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Nvidia GPU prices may rise as TSMC considers its production fees

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Nvidia GPU prices may rise as TSMC considers its production fees

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Powerful as RTX 40 series is, Nvidia has come under fire for the cost of its current generation graphics cards. While more recent RTX 40 Super refreshes have helped matters, the next batch of GeForce GPUs could be more expensive. Nothing’s set in stone, but comments made by new TSMC leadership could prompt Team Green to adjust its own prices.

Since its arrival, GeForce RTX 4090 has remained the best graphics card on the market in terms of performance. It’s an awesome bit of kit, but it’s also excruciatingly expensive with a $1,600 MSRP. The rest of Nvidia’s stack is more affordable but pricing problems remain. Even the $300 GeForce RTX 4060 is too expensive for some, not forgetting its poor value relative to previous generations. The market is crying out for reduced costs, but the winds are blowing in the other direction.

Nvidia’s streak of record-breaking stock value and profits hasn’t gone unnoticed by TSMC’s chairman. Now, it appears Che Chia Wei wants a bigger piece of Team Green’s pie. As reported by Nikkei Asia (via TechSpot), Wei has recently voiced complaints to Nvidia CEO Jensen Huang on this subject. Wei said, “I did complain to Nvidia’s CEO Jensen Huang – the ‘three trillion guy’ – that his products are so expensive. I think those products are really valuable for sure, but I am thinking about showing [him] our values as well.”

It doesn’t take a genius to unpack what Wei means by value. In fact, he even comments, “anyone sitting at home can think [up this strategy].” Higher production fees would naturally eat into Nvidia’s profits, which could prompt it to raise the price of its GPUs. This should primarily affect its AI business, the major money maker for Team Green. That said, there’s no reason we should expect the GeForce RTX 50 series to be left unscathed. Let’s not forget, either, we’re not expecting competition at the high-end from AMD RDNA 4.

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Neither TSMC or Nvidia has committed to raising costs, but it seems likely the former. How Team Green would respond remains to be seen. However, I wouldn’t expect the GeForce RTX 50 series to bring graphics card prices down. The most realistic best case scenario for consumers is a continuation of the existing bands. Oh, how I long for a return of the days when an 80 class card cost $600. Here’s to you, GeForce GTX 1080.



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