Smaller node = higher cost because the technology is more advanced.
Aggravating-Dot132
That’s actually true, but not because it’s “harder”. But because the demand and capitalism system are the reason behind it.
First-Junket124
It’s more complicated than that.
Firstly, it IS more expensive the smaller you go but it actually isn’t that much it’s like 5% more expensive and even that’s pushing it, it’s probably lower. Scaling production means this does have an effect if only minor and maybe used as a measurement decade’s apart.
You then have yields, so the smaller you go the lower yields are depending on what chipset it is, how it’s laid out, etc. Basically the smaller it is the more likely to have bad sectors.
Next is where MOST of the money goes. People designing more efficient, more powerful, and smaller chips. Everything at the beginning stage is astronomical in terms of cost it is actually so unfathomably enormous for many.
Like costs ARE going up you can’t deny it, if you do you’re just plain wrong.
The other thing is that these two have been in business a LONG time so they have valuable data showing what people will and will not buy, they know far more about how high they can go before people finally say enough is enough and they teeter on the edge because why wouldn’t they? They want to maximise profit. Nvidia especially are THE gaming GPU brand, AMD has a good foothold but nothing like Nvidia and Intel is that cool cousin no one talks about.
glumpoodle
I actually partly agree with the sentiment – they’re *not* screwing over their customers – or, rather, they’re not screwing us over *more than usual*. They’re selling at the point they believe customers are willing to pay – and if people buy it in the numbers they project, they’re right. If it doesn’t sell at those volumes, then they were wrong and the street price will inevitably drop as warehouses start filling up.
Do I think they’re overpriced? Yes, wholeheartedly. I express this by *not buying their overpriced goods* – at least, not buy them new. But based on past experience, I expect most gamers will instead continue to complain loudly while voting with their wallets for higher prices, and Nvidia will oblige.
josephseeed
Nvidias gross margin for the second quarter of this year was 75%.
Edgaras1103
you can just ignore it and not buy it , right? Or is that too hard for some of you?
hagg3n
Actual I think at this point Nvidia is being nice. They are making bank selling for data centers and AI and consumer GPUs slice getting thinner by the minute.
I really fear they’ll just drop from the race any day now, perhaps leave a few ultra high end pieces in the market for branding more than anything else.
7 Comments
https://cset.georgetown.edu/article/analysts-believe-that-a-single-tsmc-5nm-wafer-costs-17000/
Smaller node = higher cost because the technology is more advanced.
That’s actually true, but not because it’s “harder”. But because the demand and capitalism system are the reason behind it.
It’s more complicated than that.
Firstly, it IS more expensive the smaller you go but it actually isn’t that much it’s like 5% more expensive and even that’s pushing it, it’s probably lower. Scaling production means this does have an effect if only minor and maybe used as a measurement decade’s apart.
You then have yields, so the smaller you go the lower yields are depending on what chipset it is, how it’s laid out, etc. Basically the smaller it is the more likely to have bad sectors.
Next is where MOST of the money goes. People designing more efficient, more powerful, and smaller chips. Everything at the beginning stage is astronomical in terms of cost it is actually so unfathomably enormous for many.
Like costs ARE going up you can’t deny it, if you do you’re just plain wrong.
The other thing is that these two have been in business a LONG time so they have valuable data showing what people will and will not buy, they know far more about how high they can go before people finally say enough is enough and they teeter on the edge because why wouldn’t they? They want to maximise profit. Nvidia especially are THE gaming GPU brand, AMD has a good foothold but nothing like Nvidia and Intel is that cool cousin no one talks about.
I actually partly agree with the sentiment – they’re *not* screwing over their customers – or, rather, they’re not screwing us over *more than usual*. They’re selling at the point they believe customers are willing to pay – and if people buy it in the numbers they project, they’re right. If it doesn’t sell at those volumes, then they were wrong and the street price will inevitably drop as warehouses start filling up.
Do I think they’re overpriced? Yes, wholeheartedly. I express this by *not buying their overpriced goods* – at least, not buy them new. But based on past experience, I expect most gamers will instead continue to complain loudly while voting with their wallets for higher prices, and Nvidia will oblige.
Nvidias gross margin for the second quarter of this year was 75%.
you can just ignore it and not buy it , right? Or is that too hard for some of you?
Actual I think at this point Nvidia is being nice. They are making bank selling for data centers and AI and consumer GPUs slice getting thinner by the minute.
I really fear they’ll just drop from the race any day now, perhaps leave a few ultra high end pieces in the market for branding more than anything else.