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Supply Chain Issues Getting Worse Chromebooks & Graphic Cards Hit

Supply chain issues are set to get worse with retailers facing shortages and consumers facing price hikes for notebooks, gaming machines and in particular graphic cards.

Samsung a major OEM semiconductor supplier to PC Companies is struggling to supply components and this is having a kick on effect they claim.

While retailers are set to have limited supply, they are going to be able to sell goods at a premium price with several products having already risen by over 20% claim observers.

It’s also been revealed that despite warnings from Nvidia Intel and AMD that the GPU supply crunch will last through the first half of the year and into the second half there is now real concern about second half supply with key PC brands telling ChannelNews that there will be no supply of in demand Chromebooks till September.

One major PC supplier said this week that they are now learning that the situation is far worse than we had previously believed. Gamers, creatives, and those needing a new graphics card for work or entertainment should be prepared to either pay double or triple the suggested retail price.

Digital Trends reported that one GPU vendor claimed that supplies had actually decreased, rather than increased, in recent months, which is making a bad situation even more untenable. ASUS predicted that sales of its own branded RTX 3000 series graphics will fall by 5% to 10% from the fourth quarter of last year due to short supplies.

“On the graphics card question, currently the main issue is the shortage of Nvidia (GPU) shipments, so there’s a supply constraint situation,” said Asus Co-CEO Sy Hsu recently.

“Everyone is scrambling to obtain units.” he claimed.

Hsu went on to explain that because there is a drought in supply for the RTX cards, prices are increasing. This means that gamers will not only be challenged to find a retailer with a GeForce card in stock, but they will likely have to pay more than the card’s launch price.

Some shortages appear to stem from Samsung, Nvidia’s partner in the manufacture of the 8N node for the RTX 3000 series.

It’s been reported that Samsung is having a difficult time with its semiconductor yields.

A recent report from Digitimes suggests that inventory for Nvidia’s RTX 3000 series will be tight through the third quarter of 2021, which is almost half a year longer than the first quarter date projected by the company’s chief financial officer.

AMD’s prior guidance had suggested that its Radeon cards will be more available after the first half of the year.

ASUS recently cautioned investors that it could once again raise prices if supply constraints don’t begin to ease. Earlier this year, the company raised the price of its TUF Gaming GeForce RTX 3080 card from $729 to $1,069 to account for rising manufacturing costs and the U.S. tariff that was reinstated in the final days of the Trump administration.

DigiTimes said that ASUS isn’t the only vendor or retailer raising prices on graphics cards, however, and prices of GPUs on the secondary market are double or triple what they were expected to cost at launch.

According to research by The Verge, prices for the $499 GeForce RTX 3070 and $579 AMD Radeon RX 6800 were $819 and $841, respectively, on the secondary market in December. Today, the pair of GPUs would be worth $2,570 combined.

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