![]() In 2021 a severe cold snap hit Texas, with the temperature reaching 0F (-18C), prompting the president to declare a state of emergency. In addition to increased demand being ill-suited to downsized production capacities, several accidents caused additional microchip production delays, furthering the GPU shortage on the market. Bad Things Come in ThreesĪn old superstition says that if two unfortunate events happen in a short time, a third is very likely to happen, too. We’ll need to invest in new technology and facilities to accommodate the new reality, but all of that won’t happen overnight. We, as a world, are still struggling with logistical issues that won’t be sorted out by time alone. This not only increased travel costs but also affected every industry that ships products worldwide (think - pretty much every industry, especially in the tech sector). Same as GPU prices, the rising demand for transportation when there aren’t enough shipping containers to go around led to an increase in transportation costs. Even the car manufacturers realized their mistake and are now struggling to obtain enough microchips to meet customer demand. It wasn’t just the PC manufacturing sector that experienced this problem. Consumer demand was rising, and the industry was struggling to deliver, leading to demand outweighing the supply, which in turn caused the GPU prices to skyrocket. Since these orders have to be made months in advance, you can imagine how production downsizing, combined with shipping delays and general chip shortages, affected the process. ![]() ![]() When AMD and Nvidia started ordering new microchips, the factories couldn’t obtain the required silicon on time. ![]() A Wrench in the GearsĪs mentioned before, the automotive industry canceled its microchip orders, and the microchip industry downsized production just when PC sales began to rise. This led to a general lack of GPU availability and hiked up the prices of available graphics cards. Increased consumer demand for graphics cards (among other things) led to a renewed demand for microchips that the manufacturers couldn’t deliver. We still haven't recovered from the pandemic's effects on both production and user demand, especially in the consumer electronics sector.ĭuring the beginning of the pandemic, the PC industry market grew 14.8% due to work and learning activities shifting from offices and classrooms to living rooms and bedrooms. Factories had to stop or downsize their production, large transport hubs were closed, and transportation of goods and materials almost came to a halt at a time when the demand for goods and commodities started to rise. The rest of the world didn’t fare any better. In response, the microchip factories downsized their production accordingly. When the pandemic first hit, one of the largest buyers of microchips, the automotive industry, canceled its orders, expecting decreased demand. The whole ordeal is a combination of the pandemic, supply issues, and bad luck that nobody anticipated. The root cause of the GPU shortage is the microchip shortage. It Only Takes One Pebble To Start an Avalanche There are no quick and easy solutions to the current microchip supply problem, and it will take time to sort out the issue for good. One of them is the automotive industry, in which many manufacturers have had to scale down their production. The problem with microchips affects many industries. At the same time, Nvidia expects to continue facing supply problems until the end of 2022, with the situation improving in 2023. According to 3DCenter, a site that follows average graphics card prices in Central Europe, there was a steady decrease in prices from the beginning of the year. The good news is we are finally making some progress. So, when will graphic cards be back in stock? Let’s find out. Therefore, demand outweighed the supply, and the price went up naturally. The price rise happened due to the graphic card shortage caused by the global shortage of microchips. During that time, it was easier and more affordable to perform minor hardware upgrades like RAM and SSD, but those couldn’t match a GPU or CPU refresh in terms of gaming or heavy workload performance. If you’ve been looking to get a new PC or upgrade your old one, you are probably keenly aware that the prices of graphic cards (GPU) and processors (CPU) in the last two years have been through the roof.
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