According to sources, prices of graphics cards are expected to go down on an average 20% scale in the month of July. This drop in the prices of graphics cards is being attributed to the cryptocurrency mining chill which has greatly weakened the demand for graphics cards. The suppliers are now planning to majorly cut down the prices in order to clear their inventories. This stagnant demand has also impacted the purchases of ASIC mining systems, sources from the upstream supply chain reveal.
The dramatic slowdown in mining ASIC orders is also expected to negatively impact the revenues at Taiwan Semiconductor Manufacturing Company in 2018 including its IC design service partners like Global Unichip.
This dwindling profitability has caused small and medium mining firms to gradually remove themselves from the market. Large mining firms on the other hand are also bearing the brunt and cutting down on their procurements of new machines.
Presently, the international worldwide market of graphics cards possesses an inventory of approximately seven million units. In fact, Nvidia has some million GPUs that are waiting to be launched. Cryptocurrency minors are anticipated to start selling their used graphics cards to the retail chains which will also cause other vendors to introduce major price cuts in competition.
Owing to the current situation of the graphics cards market, next-generation GPUs by Nvidia made using TSMC’s 12nm and 7nm processes may be postponed to late 2018 until after inventories are returned to safe levels.