Nvidia Corp (NASDAQ:NVDA), a leading player in the semiconductor industry, is at the center of one supply crisis worsened due to increased demand for its RTX 4090 graphics cards.
The shortage of these cards, especially pronounced in regions such as Southeast Asia and Taiwan, underlines the challenges faced by both consumers and manufacturers.
This increase in demand comes against the backdrop of tightened export controls on advanced chips to China by the US government, further complicating supply chain dynamics, Nikkei Asia reports
As a result, retailers are reporting steep price increases of up to 60% since the chip’s launch in 2022, as buyers scramble to secure available inventory for resale in lucrative markets such as China and Hong Kong.
This frenzy surrounding the RTX 4090, coupled with continued demand for Nvidia’s H100 chips used in AI training, is exacerbating the semiconductor shortage, impacting gaming enthusiasts and industries that rely on advanced computing technology.
Last October, purchasing agents emptied shelves in a frenzy at Taiwan’s Guanghua Digital Plaza, especially for Nvidia’s sought-after RTX 4090 graphics cards. These agents, who had cash on hand, attempted to exploit a lucrative price differential by reselling the cards in markets restricted by the U.S.
The RTX 4090, originally designed for displaying high-quality visuals in video games and suitable for AI model training, found a booming market in Hong Kong and China despite US sanctions. Previous reports highlighted how US sanctions led to the emergence of an underground market for…