According to the source, Nvidia has stopped shipping GPUs to its partners since September 15. The fact is that the quota for the current month was chosen in the middle. The resumption of supplies is expected early next week. But it is clear that such a situation does not in any way contribute to the resolution of the deficit, because quotas are quotas, and the market is still far from saturation.
The tense situation with the supply of video cards is developing against the backdrop of an unfavorable situation with electricity in China. For a reason, the country’s authorities began to ban mining this year – apparently, the Chinese leadership foresaw an increase in demand for electricity as the economy and industry recovered after the lifting of restrictive measures related to the COVID-19 pandemic. However, even eradicating mining does not help much: the power shortage is serious, and this affects many industries. Including semiconductor. Some factories are forced to stand idle, and this leads to an even greater shortage of components. Intel, Nvidia, Qualcomm, Apple and Tesla have already faced it. The situation is aggravated by China’s program to reduce carbon dioxide emissions.
For example, Chang Wah Technology, a supplier of chip packaging components for ASE Technology, Infineon and NXP, has halted production from September 26 until the end of the month by a decision from the authorities. Unimicron Technology, a major supplier of printed circuit boards, has halted its production facility in Jiangsu City, but has also increased production at other sites to avoid shortages. It is good that the restrictions do not affect enterprises with a continuous production cycle, so TSMC and UMC continue to work as they did. But Foxconn, the world’s largest contract manufacturer, stopped its production facilities in four cities at once: Longhua, Guanglang, Taiyuan and Zhengzhou.