Why don't GPU makes make their own graphic cards?

[Vairend]

Hi,

I always wondered about this. Since AMD and Nvidia always build the chips why don't they also produce the cards? Why do they always rely on 3rd parties to deliver purely stock hardware and cosmetic appeal?
If you look at all the graphic cards we already know the peak clock they can reach and the makers just play with the numbers. This one goes higher so is more expensive, this one goes lower so is less expensive, this one has an extra fan etc. But they really don't seem to be bringing anything to the card that AMD or NVidia don't already know about or expected.

[LukeSavenije]

they sort of do, but it's one simple reason

 

it's cheaper, even founders cards are made by for example PNY for Nvidia

[BobVonBob]

If we want to go deeper, Nvidia and AMD don't even make the chips, they're really just glorified design firms. The companies that physically make the chips Nvidia and AMD sell are Global Foundries and TSMC.

[Cyracus]

If Nvidia or AMD decided to only produce cards themselves it could lead to monopoly issues, since most places don't allow those. It's simpler for Nvidia and AMD to put a little bit of R&D into producing a cooler for a series and sell the majority for a tidy profit, also offloading all further R&D work onto those third party manufacturers. Basically it's a mutually beneficial situation, Nvidia and AMD get easier money, 3rd party manufacturers take a hearty share of the work. Some cards, like Nvidia's Titan series don't get custom cooler support, but do get aftermarket manufacturing, with Nvidia designing the cooler and outsourcing the production to the third parties, thus eating the R&D to offload the manufacturing

[thinwalrus]

They might also be afraid of what might happen to their patents if no competition at all. They would be hit with the same shit that brought down Nokia and Ericsson and forced to license the essentials for dirt cheap.

[Elochai]

It also more easy to design and sell the design and chips to other manufacturers.

 

think about it, you come up with a design for a card and the chips. You then sell said design and chips to a hand full of companies. These companies have to deal with the up front cost of production of the cards, the packaging design cost, advertising cost, freebies / addons, and the risk of not being able to sell the product to cover these cost or having to many returns. They also got to deal with the biggest headache of all CUSTOMERS!!!. 

 

So isnt better to collect the money and let someone else deal with the negative aspects?

[Mick Naughty]

Pretty sure nvidia does make cards. Atleast is says nvidia on the box. And it’s on their site. 

 

Which what makes the 20 series so different adding another fan to the shrouds. 

[Peskanova]

have you heard about outsourcing  

[Zeitec]

15 hours ago, Vairend said:

Hi,

I always wondered about this. Since AMD and Nvidia always build the chips why don't they also produce the cards? Why do they always rely on 3rd parties to deliver purely stock hardware and cosmetic appeal?
If you look at all the graphic cards we already know the peak clock they can reach and the makers just play with the numbers. This one goes higher so is more expensive, this one goes lower so is less expensive, this one has an extra fan etc. But they really don't seem to be bringing anything to the card that AMD or NVidia don't already know about or expected.

Well let's start off by staying that no, Nvidia and AMD do NOT build their own chips for the same reason they don't build their own cards: it's a lot of work and puts a lot more pressure on you. All they do as far as I'm aware, is design the chips. I mean look at Intel right now. Their 10nm process has been stuck in limbo for like 3 years, and they STILL can't get it right. Now look at AMD, who is rapidly gaining on Intel because they're able to utilize other chip makers' processes. Now AMD graphics may be struggling, but imagine if they were stuck with GloFo right now! They'd STILL be making Vega 64 as their highest end GPU because they wouldn't have access to 7nm!

 

So yeah it sort of diversifies their manufacturing and allows them to progress more quickly by taking advantage of the latest tech, no matter who has it.