An unidentified Taiwanese AIB maker has been reported to have send back some 300,000 GPU chips to NVIDIA as the demand for video cards has collapsed. We suspect the chips are Pascal parts.
Digital coin prices have fallen considerably making them unprofitable so demand for new hardware has dried up faster than an ice cube in the Sahara.
This is quite interesting news as Nvidia usually exerts massive influence over its cartel partners and can be quite ruthless with allocations of new GPUs if partners step out of line.
The reports also finger Nvidia who is aggressively buying GDDR5 as evidence that they now have an excess stock of lower-end GPUs that need to be made into boards as well as other insiders/sources citing an inventory buildup.
Now gamers like us have been deprived badly from being able to get a better GPU for gaming. We would scream bloody murder if they destroyed the chips rather than sell them cheap to a AIB maker for the gaming market. A lower cost GPU would be welcomed by gamers like us who still are using Kepler etc.
For years NVIDIA has keep the supply tight so that prices do not fall very fast. Now with the supply change, price rot will be accelerated. Deep price cuts would make gamers flock over to stores to get an upgrade.
The surplus of chips could delay the introduction of Volta which is not clearly in full production quite yet. Prices on eBay have not flinched much yet but given this news the prices should tumble faster than a weed.