The consumer electronics market has been shrinking since the beginning of the year. On the other hand, according to various analyzes, interest in new TVs, computers, mobile phones and tablets will continue to decline until the end of the year. The first reason behind all this is global inflation. We can list factors such as the end of the pandemic and war among other reasons.
Previously, we learned that giants such as Apple, NVIDIA and AMD have long-term agreements with TSMC. According to DigiTimes, all technology companies have started to revise their orders. Citing industry sources, the website claims that Apple, AMD, and NVIDIA are in talks to reduce their order numbers.
While AMD is reportedly looking to drop its 7nm and 6nm wafer orders, NVIDIA is currently facing an oversaturated GPU market. The graphics card market is said to have a large stock of the RTX 30, so NVIDIA is willing to cut prices. On the other hand, some customers are waiting for GeForce RTX 40 and Radeon RX 7000 series graphics cards.
NVIDIA is just one of the companies that has prepaid TSMC for its 5nm process. It seems that TSMC is not very willing to make concessions for its customer. The Taiwanese giant may have good reasons because they will need to find customers for the remaining production capacity from NVIDIA.
This situation of the market was also reflected in the stock prices of AMD and NVIDIA. Both stocks are down almost 50% in just 6 months.