If you are a pc gamer and in the market looking for components to build your pc, but returning empty-handed every time, you are not alone.
GPU shortage is a real thing that has turned into a massive crisis causing interruptions in pc building projects and inflated prices. The problem has been around since 2020 due to the global chip shortage, which has affected the production of graphics cards.
Continue reading as we shed more light on this issue and discuss the GPU shortage and when it will end.
The reason behind GPU shortage
While GPUs continue to remain in high demand, a few aspects have led to the ongoing shortage. Let's look at those factors.
The Covid 19 pandemic led to increased cryptocurrency mining as people saw it as a lucrative opportunity to earn a few bucks. Mining can be taxing for the GPU as it is an ongoing activity, and the GPU works around the clock. Thus, Crypto miners rushed to buy new GPUs, causing massive demand and price hikes.
Increase in demand
There was a considerable increase in pc users and pc gamers during the pandemic. There was thus an increasing graphics cards demand, and by extension, the chip demand as individuals strove to upgrade their hardware for pc gaming.
The pandemic also led to a supply-constrained environment due to disruptions in the manufacturing process and causing a chip shortage. The graphics card market thus took a huge hit as demand ousted the GPU supply.
The concentrated chip market
Currently, there are a limited number of chip makers in the market, so much so that you can name the semiconductor companies at your fingertips. For instance, Intel, Taiwan-based TSMC, supplies GPUs ad CPUs for AMD and Samsung, which manufactures Nvidia's RTX 3000 series.
Logic suggests they could just make more chips to cater to the limited supply issue and finish the chip shortage, but supply issues cannot be addressed easily. The problem is not whether or not they are working at full capacity. There are hindrances in the supply chain which need to be addressed for more supply, despite the emphasis on improvement in the supply chain by the Biden administration.
When will GPU shortage end
In August 2021, Nvidia CEO Jensen Huang conveyed that he expected the supply-constrained environment to persist well into the next year. However, according to AMD CEO Lisa Cu, the next year seems promising as she expects the chip short supply issue to improve by next year as the chip supply capacity is expected to build up and improve the market conditions. What the future holds remains to be seen.