Home » Technology » Nvidia Pours $10 Billion in Production Security for RTX 40

Nvidia Pours $10 Billion in Production Security for RTX 40

Nvidia RTX 3050

Nvidia will launch its new GeForce RTX 40 series by the end of the summer, but as before, it must first secure sufficient production capacity. Nvidia apparently wants to spend up to nine billion dollars on this. Like the portal hardware times reported, when Nvidia released its latest corporate earnings, it said it spent up to $9 billion in inventory purchases and prepayments for future products in the last quarter of the year alone. More money is expected to flow in the future.

Invested 10 Billion to Secure RTX 40 Production

By comparison, spending in this area was significantly lower in the previous quarter at just under $7 billion. In the same quarter of the previous year, only a good $2.5 billion flowed into such spending. The reason for the significant increase in these costs would be that Nvidia has to spend large amounts of money to secure the capacity to produce future products.

According to industry sources cited by peers, Nvidia paid TSMC about $1.64 billion in the last quarter alone to get enough capacity to manufacture its 5 nanometer-scale graphics chips. In the first quarter of 2022, an additional $1.79 billion should flow for this. In total, the company would spend up to $10 billion for TSMC to even give the company the chance to have its RTX 40 series products, such as the RTX 4080 and RTX 4090, manufactured by the world’s largest chip contract manufacturer.

Unlike Samsung, where Nvidia previously had its “Ampere” chips from the RTX 30 series produced, TSMC can guarantee a largely stable production. TSMC’s 5-nanometer process has already been extensively tested, as several customers such as Apple, Qualcomm, and AMD have had their chips made at this scale for some time now. However, the huge demand can still lead to bottlenecks, so it’s still unclear whether GPU prices will finally drop back to normal levels with the new product line and better availability.

Mark Goodman

Digital marketing enthusiast and industry professional in Digital technologies, Technology News, Mobile phones, software, gadgets with vast experience in the tech industry, I have a keen interest in technology, News breaking.