Why can't Nvidia and AMD increase production rates to combat the low stock ?

[a poor scientist]

Because it takes YEARS to build a processor fabrication plant and those things usually don't just sit around idle so you either have to wait for openings in the fabrication plant schedule or bump other projects (which will cost money). And that's just the GPU chip itself. The card has dozens or hundreds of other components on it too and you have to ask all of them to make more stuff… and if they don't have it laying around or already in production then you have to wait months or years for them to produce the parts.

It sucks to not be able to build a card because a single inductor on the card is out of stock and the company can't produce any more for a year, but stuff like that happens. You can change the design to work around that but that takes time too, especially if the new part is a different size and requires changes to the board… more changes means more testing as well to verify that the new product performs as expected. And what if the testing reveals that it doesn't perform as well as expected?

These things are super complicated and take years to design, often with many generations of the product in different design stages at once.

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sai mahith

/youtuber/programmer/freelancer/kid

 

 

 

 

 

 

 

 

 

 

 

 

[Cool_Evlo]

4 minutes ago, a poor scientist said:

Because it takes YEARS to build a processor fabrication plant and those things usually don't just sit around idle so you either have to wait for openings in the fabrication plant schedule or bump other projects (which will cost money). And that's just the GPU chip itself. The card has dozens or hundreds of other components on it too and you have to ask all of them to make more stuff… and if they don't have it laying around or already in production then you have to wait months or years for them to produce the parts.

It sucks to not be able to build a card because a single inductor on the card is out of stock and the company can't produce any more for a year, but stuff like that happens. You can change the design to work around that but that takes time too, especially if the new part is a different size and requires changes to the board… more changes means more testing as well to verify that the new product performs as expected. And what if the testing reveals that it doesn't perform as well as expected?

These things are super complicated and take years to design, often with many generations of the product in different design stages at once.

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sai mahith

 

 

 

 

 

 

 

 

 

 

 

 

what is the purpose of this post? I think everybody knows this...

[dean_5234]

are you answering your own question? lol

[Fasauceome]

24 minutes ago, Cool_Evlo said:

what is the purpose of this post? I think everybody knows this...

I wouldn't think everybody knows this but on the other hand, the people who do need to know this won't see it.

[Cool_Evlo]

Just now, Fasauceome said:

I wouldn't think everybody knows this but on the other hand, the people who do need to know this won't see it.

Hmm, GPU companies suppliers cant produce enough resources to make the graphics cards, well they should just make more then!

[aisle9]

Ok, but why don't they just make more?

[a poor scientist]

4 minutes ago, aisle9 said:

Ok, but why don't they just make more?

see, u have understannd how they made

[aisle9]

3 minutes ago, a poor scientist said:

see, u have understannd how they made

If I'm eating popcorn and I run out, I go make more. They're eating chips and they run out, so they should just go make more chips.

[Moonzy]

just make more factories

no money? just print more money

[a poor scientist]

Just now, Moonzy said:

just make more factories

no money? just print more money

it is expensive to build more processor fabrication plant

[a poor scientist]

The publicized cost was estimated to be 2.6 billi. About fifteen years ago, the cost of setting up a new state-of-the-art semiconductor fab was estimated to be around 4~5 billion USD. Adjusting for inflation today ( Inflation Calculator) it corresponds to a 50% increase, so it would be about 7.5 billion USD.  u will give the money?

[Moonzy]

3 minutes ago, a poor scientist said:

it is expensive to build more processor fabrication plant

Don't they have billions?

How much does a factory cost?

[a poor scientist]

2 minutes ago, Moonzy said:

Don't they have billions?

How much does a factory cost?

As of June 2021, Nvidia has an estimated net worth of more than $150 billion. It has a total asset of $13.292 billion and equity worth $9.342 billion. The company earned $3.047 billion in the 2018 fiscal year and total annual revenue of $9.714 billion, which is 40.6% more than the previous fiscal cycle.

[aisle9]

9 minutes ago, a poor scientist said:

As of June 2021, Nvidia has an estimated net worth of more than $150 billion. It has a total asset of $13.292 billion and equity worth $9.342 billion. The company earned $3.047 billion in the 2018 fiscal year and total annual revenue of $9.714 billion, which is 40.6% more than the previous fiscal cycle.

So why don't they just build more factories with all that money? Then they can build more chips.

[Spotty]

I don't know why you copied and pasted an answer from a 3 year old Quora post or copied an exert from an article to our forum, but don't. The forum is to have discussions, not just copy and paste random quotes and articles you find online.

 

https://www.quora.com/Why-cant-Nvidia-and-AMD-increase-production-rates-to-combat-the-low-stock-due-to-mining

https://www.wealthypersons.com/nvidia-net-worth-2020-2021/