AMD’s add-in board (AIB) partners are reportedly preparing for another round of price increases on Radeon GPUs, with a notable shift in product focus towards 8GB models. This strategic change, expected to be implemented in February or March, comes as a shortage of GDDR6 memory impacts profit margins and production.
Key Takeaways
- AMD AIB partners are planning a 5-10% price increase for GPUs.
- Production focus is shifting towards 8GB VRAM models like the Radeon RX 9060 XT 8GB and RX 7650 GRE.
- 16GB SKUs, such as the Radeon RX 9070 XT, may become less prioritized and potentially more expensive.
- The primary driver for this shift is a shortage and rising cost of GDDR6 memory.
The Impact of Memory Shortages
According to reports from Chinese Board Channels, a reliable source for GPU news, distributors have already implemented a 5-10% price adjustment in January. Another increase is anticipated for February or March, though the exact percentage remains undisclosed. This move is directly linked to a shortage of GDDR6 memory, which is squeezing profit margins for AIBs unless prices are raised. Consequently, AMD is expected to prioritize stocking 8GB SKUs over their 16GB counterparts.
Shifting Product Focus
The shortage of GDDR6 memory is forcing manufacturers to re-evaluate their production strategies. With DRAM prices rising sharply, producing 8GB variants is more cost-effective. This could lead to a situation where 16GB cards become more expensive, potentially narrowing the price gap between AMD and NVIDIA in the midrange market. The initial effects of these changes are expected to be most visible in mainland China, where partners may allocate more production volume to 8GB cards and reduce the output of certain 16GB models.
Market Implications
Distributors may have stocked up following the January price increase, which could result in uneven product availability if resellers hold onto inventory in anticipation of further adjustments. While the immediate impact is seen in China, the ripple effects on Western markets and pricing on platforms like Amazon and Newegg are yet to be fully observed. This situation highlights the ongoing challenges in the GPU market, influenced by supply chain constraints and the burgeoning demand from the AI sector for memory components.
Via Board Channels
