[HN Gopher] AMD, Intel, and Nvidia Reportedly Slash Orders with ...
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       AMD, Intel, and Nvidia Reportedly Slash Orders with TSMC
        
       Author : mirzap
       Score  : 124 points
       Date   : 2022-12-30 14:38 UTC (8 hours ago)
        
 (HTM) web link (www.tomshardware.com)
 (TXT) w3m dump (www.tomshardware.com)
        
       | cm2187 wrote:
       | Is this because of the economic slowdown as the article suggests,
       | or simply because 2020-2021 covid lockdowns lead to a big surge
       | in buying of computer hardware, and therefore a big drop now
       | given that modern computers last a lot longer and everyone is
       | equipped?
        
         | jmalicki wrote:
         | > 2020-2021 covid lockdowns lead to a big surge in buying of
         | computer hardware, and therefore a big drop now given that
         | modern computers last a lot longer and everyone is equipped
         | 
         | In other words, the slowdown?
        
           | cm2187 wrote:
           | Computer hardware doesn't drive the economy. You can have a
           | slowdown in computer buying that isn't the result of a
           | general economic slowdown.
        
             | adastra22 wrote:
             | It's the same effect though.
        
         | j_walter wrote:
         | Both of those were reasons given by the CEO of TSMC recently.
        
         | ChuckNorris89 wrote:
         | Maybe both?
        
       | barbariangrunge wrote:
       | Sorry; what is tsmc? Is there a single manufacturer with all the
       | patents that everyone relies on?
        
         | Out_of_Characte wrote:
         | Its worse, TSMC is the single biggest semiconductor
         | manufacturer for general logic chips. Samsung has their own
         | fabs for ram and ssd's specialised for density. All the
         | litography equipment they use come from a single company called
         | ASML. They also have complete market domination for the past
         | few generations of litography machines and are the first and
         | only producers of EUV litography.
         | 
         | Semiconductors are so complex and capital intensive that even a
         | duopoly couln't balance the expense.
        
       | j_walter wrote:
       | This is all pretty accurate. The only real surprise is that 40um
       | tech and above are still running full steam and even the 20+ year
       | old tech has only dropped a few percent for next year.
        
         | Veliladon wrote:
         | 3D NAND, which basically underpins all of our SSD tech, is hard
         | enough to make at 40nm. They basically have to fill a tiny hole
         | really precisely with layers of five different materials to
         | create a vertical stack that works. It's really hard to go down
         | node sizes plus once you hit 28nm the price of transistors
         | stops decreasing and starts increasing instead with 22nm and
         | smaller.
        
           | zeusk wrote:
           | Micron, Samsung and SK Hynix are doing volume production of
           | 1xnm QLC devices with further complexity like CuA.
        
           | wtallis wrote:
           | None of that is really relevant, because TSMC isn't in the
           | business of making flash memory. The fab processes for logic
           | and for flash memory are so different that there's no point
           | to making comparisons between their respective nodes.
        
             | bob1029 wrote:
             | I don't know about "no point to making comparisons", but
             | they are definitely different animals.
             | 
             | When I worked at Samsung, flash & LSI were like 2 different
             | companies. Lots of reuse at the systems engineering level
             | though. At a certain point of abstraction you can't tell
             | what is on the wafer anymore so you might as well track it
             | in the same database.
        
               | j_walter wrote:
               | Completely different animals. I know that when TSMC has
               | looked at acquiring used fabs before and in at least one
               | case because the fab was DRAM it was more costly and time
               | consuming to convert it to Logic fab than just building a
               | whole new fab.
        
           | monocasa wrote:
           | This idea that the price per transistor gets higher after
           | 28nm needs to die. Right now the cheapest node for logic
           | dominated chips is N6 (an optical shrink of N7). And even
           | then, N5 is still cheaper than N10.
           | 
           | https://www.tomshardware.com/news/tsmcs-wafer-prices-
           | reveale...
        
         | ilyt wrote:
         | This is entirely unsurprising if you actually look at things
         | other than big CPU/GPU/IO.
         | 
         | Power regulators doesn't need small transistors, it wants big
         | nice and fat transistors. You'd get at least one of them in
         | every device and a bunch in any bigger device. Same with any
         | power device, LEDs, and really anything that passes some
         | current.
         | 
         | Any microcontroller smaller than "runs full fledged linux"
         | often cares about cost of production first and foremost, hell,
         | STM32 only recently [1] got on 90nm node!
         | 
         | Interestingly enough, bigger node might get you worse uA/MHz
         | but often lower idle current (the bigger things are the lower
         | the leakage) so they might even be desirable. And the chip
         | might want to have some mA current output on each pin (so it
         | doesn't require external drivers to control stuff), which again
         | means some transistor size in your I/O port is fixed and can't
         | be made smaller so your savings from going to smaller process
         | are not linear.
         | 
         | For vast majority of non CPU/GPU chips it comes to cost to
         | manufacture and those 20+ years old lines not only paid for
         | themselves multiple times, they also have great yields.
         | 
         | * [1] https://blog.st.com/stm32g0-mainstream-90-nm-mcu/
        
           | petra wrote:
           | Infineon has cost-optimized cortex-m0 mcu's at 65nm and 40nm.
           | 
           | But they are not optimized for low idle current , they're for
           | motor control and led driving.
        
           | taffronaut wrote:
           | That STM32 blog about 90nm is from 2018. They are shipping a
           | significant number of STM32 devices on 40nm now.
        
           | RC_ITR wrote:
           | Just to add color to the discussion above, what distinguishes
           | a microcontroller from other chips is that the volatile
           | memory is on the same piece of silicon as the processing
           | cores.
           | 
           | This allows for power saving because you don't have to
           | condition signals as they jump from silicon piece to silicon
           | piece (oversimplification).
           | 
           | It is somewhat harder to make the above on smaller nodes than
           | it is to make _just_ processing cores or _just_ memory.
           | 
           | That fact (in addition to a number of other cost and
           | technical factors) is why microcontrollers lag process nodes.
        
             | zorgmonkey wrote:
             | > It is somewhat harder to make the above on smaller nodes
             | than it is to make just processing cores or just memory.
             | 
             | I'm not convinced this is the reason because the
             | microcontrollers I know of use SRAM not DRAM and SRAM is
             | what CPU caches are (plus of course some extra logic for
             | the cache management aspect). I am aware that designing
             | dense and power efficient SRAM for a cell library is
             | considered a pretty hard thing to do, but it seemingly has
             | already been for modern processes.
        
           | dragontamer wrote:
           | > STM32 only recently [1] got on 90nm node!
           | 
           | STM32G0 is value-oriented.
           | 
           | The latest-and-greatest power efficiency STM32 is the
           | STM32U5: https://www.st.com/content/ccc/resource/sales_and_ma
           | rketing/...
           | 
           | Which seems to be 40nm.
           | 
           | I'm not 100% sure if the STM32U5 is the smallest node they're
           | using. But 40nm (or better) seems like a safe bet these days.
        
           | Pet_Ant wrote:
           | > Power regulators doesn't need small transistors, it wants
           | big nice and fat transistors.
           | 
           | Is it possible to make bigger transistors using a smaller
           | process? Just because you are using saying a 7nm process,
           | can't you still make a transistor (like if you needed) that
           | was the same size as it was on 90nm? I think of newer
           | processes as merely being more precise so you could still do
           | the old designs on them, you are just unecessarily tying up
           | the newer machines... but concievably in the future you could
           | just start using 5nm process to keep producing 30 nm and 90
           | nm chips just to consolidate production lines, non?
           | 
           | I know nothing about this, so I'm just asking.
        
             | mota7 wrote:
             | It's hard to convey just how ridiculously complex and
             | expensive 5nm is compared with 90nm.
             | 
             | 5nm is a multi-billion dollar fab, absurdly high running
             | costs, and very expensive wafers.
             | 
             | As a data point: 5nm lithography equipment is > $100M/unit,
             | needs megawatts of power to run, and they handle about
             | 60-80 wafers per hour.
             | 
             | 90nm lithography equipment is ~ $1M/unit, needs kilowatts
             | of power to run, and they handle about 60-80 wafers per
             | hour.
             | 
             | So a wafer scanned on 5nm equipment that could have been
             | scanned on 9nm equipment is carrying a very large capital
             | and operational cost burden that's pointless.
        
               | sudosysgen wrote:
               | 5nm also has about 100x more density than 90nm, to be
               | fair.
        
             | dragontamer wrote:
             | Only to a point. Certainly not at 5nm. That's too advanced
             | and power-inefficient.
             | 
             | 5nm is extremely inefficient to make: IIRC, you need to
             | submerge the parts in ultra-pure water and blast it with a
             | ultraviolet laser to get down to 5nm. This is because even
             | ultra-pure filtered air has too many particles that
             | disperses the laser that you're off by a few nanometers...
             | ruining the design. Filtering all that water and powering
             | ultraviolet-spectrum lasers is extremely high power /
             | electricity usage.
             | 
             | In contrast, a 40nm process is still airborne. You can
             | largely do 40nm with "more standard" equipment. No ultra-
             | pure water needed. No ultraviolet lasers. No quad-
             | patterning. You can use "regular" light, with "regular
             | cleanroom air", and "regular" processes to make the design
             | at far, far lower costs (or at least, with less
             | electricity).
             | 
             | ---------
             | 
             | IIRC, the "ideal" cost-efficiency moving forward is to
             | rebuild our older fabs for 300mm wafers, standardize upon
             | that wafer size. Older fabs were standardized on smaller
             | 200mm wafers with only ~45% area of the bigger wafers (and
             | less in practice, because the edge of a wafer has all sorts
             | of inefficient issues involved).
             | 
             | There's also the issue that a lot of these designs, such as
             | Power MOSFETs, are... just one, maybe two, transistors. If
             | your transistor is like a centimeter in size, there's no
             | point using 5nm or 40nm or even 90nm nodes on it. There's
             | just much much cheaper ways to fabricate a "centimeter-
             | sized" MOSFET. There's all sorts of application of "chips",
             | from 1-transistor Power MOSFETs to ~100 transistor op-amps,
             | to ~10,000 transistor transceivers, to 10-million+
             | transistor NAND-Flash arrays. (1 Megabyte isn't much these
             | days though, lol)
        
             | a9h74j wrote:
             | Yes, some power transistors place many smaller transistors
             | or mosfets effectively in parallel. An early example AFAIK
             | was the "hexfet" geometry (achieving a very wide width of
             | short-length channels). I'd guess that precisely the same
             | process would not be optimal.
        
       | arriu wrote:
       | They are forecasting a lower demand in the short term future. I'd
       | guess they ran the numbers and producing fewer high cost items is
       | more cost effective for them.
       | 
       | Unfortunately, this likely means more shortages and costs stay
       | high for the consumer.
        
         | sitkack wrote:
         | The fact that the market can still do this (reduce supply to
         | operate in the high margin quadrant) is a temporary blip due to
         | the x86 duopoly. Soon anyone will be able to supply cycles/$ at
         | a better rate than the entrenched players.
        
           | cypress66 wrote:
           | On the gpu side there is no "x86 duopoly" and the situation
           | is arguably worse than cpus. So that's probably not it.
        
             | wlesieutre wrote:
             | Nvidia and AMD have been a GPU duopoly just as much as
             | Intel and AMD have been for CPUs.
             | 
             | Intel's new Arc product is the first competitor from
             | another company in a very long time.
        
               | cypress66 wrote:
               | But anybody's free to enter, there is no x86 IP in the
               | way, as parent mentioned.
        
               | sangnoir wrote:
               | From my limited outsider perspective, it appears like
               | there are way more CPU and FPGA startups than GPU
               | startups - why is that when GPUs seemingly have lower
               | barriers?
        
               | jmalicki wrote:
               | Most of the related startups are targeting the much
               | higher-margin deep learning training accelerator portion
               | of the GPU system market, and there are a lot there:
               | 
               | https://www.ai-startups.org/top/hardware/
        
               | szatkus wrote:
               | It would take a lot of time and money to create anything
               | competetive with Nvidia and AMD's offerings. It took
               | Intel over a decade and their dGPUs still aren't very
               | good.
               | 
               | GPUs are insanely complex and the drivers are full of
               | hacks (even per game basis, a driver could swap shaders
               | with ones written by Nvidia/AMD if it detects you're
               | playing the newest popular title). The threshold to enter
               | the market is incredibly high.
        
               | echelon wrote:
               | Nvidia has a pretty tight stranglehold on deep learning
               | thanks to CUDA.
               | 
               | We really need the forces that be to change this.
        
       | brink wrote:
       | Can't they at least wait until we start to reliably see product
       | on shelves?
        
         | meltyness wrote:
         | TPUs have been all over the shelf, and adoption was snubbed.
         | More graphics cards than ever before! Real-time raytracing
         | available on your cell phone, laptop, and all 5 smart TVs in
         | your home and backyard porch!!
         | 
         | You were unable to convince your executives to adopt
         | huggingface, IOT, and instead they opted to employ phone calls
         | and Excel spreadsheets.
         | 
         | You, consumer, _failed_ to accept Stadia into your heart,...
         | and now you _shall pay_ for your snide indifference!!
        
           | walterbell wrote:
           | Where can TPUs be purchased? Vendors linked from Google Coral
           | (https://coral.ai) have been out of stock for some time.
        
             | meltyness wrote:
             | Colab and huggingface are fishing for customers by handing
             | out compute time in these things for free, and getting a
             | militia's worth of tensor-connected memory isn't too
             | expensive if you get provisioned to spin up a p2 on EC2, or
             | presumably azure or gcp.
             | 
             | Of course real consumers can't buy the hardware, real
             | consumers don't have AAA credit ratings.
             | 
             | You can always eBay a K80 as well if your motherboard
             | supports the >4G decoding switch, but my primary point was
             | about the insane purchasing power that affords large
             | CommSvc sector company the ability to crash the market for
             | a product before anyone even has logistics in place,
             | apparently wishing to gatekeep any applications.
             | 
             | - Game devs haven't made any games that stress a cloud
             | gaming environment, they didn't even push VR.
             | 
             | - Corporate consumers are hardly adopting AI at all,
             | because there's still barely even a workforce.
             | 
             | - Some _very vocal_ people find proof of work a distasteful
             | mechanism to support logistical metacommodity growth.
        
         | oblak wrote:
         | Maybe this isn't strictly about GPUs. Or maybe it's just FUD
         | designed to signal that no, video cards aren't getting cheaper
         | and they'd rather cut supply than lower their margins. Who
         | knows with this industry.
        
           | drewg123 wrote:
           | I would assume they are forecasting far less demand due to
           | the crypto crash..
        
             | ddorian43 wrote:
             | Probably just the upcoming recession. Powell will destroy
             | demand at all costs.
        
               | adra wrote:
               | Despite popular belief, most computers are used for
               | business and unless there's an entire multi industry
               | collapse, the potential demand destruction probably won't
               | be that high outside of the prosumer PC gaming markets.
               | 
               | I do think crypto is demand destroyed due to their own
               | collapse unrelated but related to the economy in general.
               | My expectation is that the next crypto bubble will take
               | longer to inflate this time vs the last, but hell what's
               | the point reading tea leaves. This could be the end of
               | crypto. All we need is a new and exciting meme way for
               | early adopters to sell losing bets into ignorant
               | followers.
        
               | ddorian43 wrote:
               | Powell will kill all bubbles (crypto,stock,real estate,
               | bonds, used cars, etc)
        
               | [deleted]
        
             | Mistletoe wrote:
             | Ethereum also moved to proof of stake and it was by far the
             | highest amount of hash rate mineable by GPUs.
             | 
             | https://arstechnica.com/gaming/2022/09/the-end-of-
             | ethereum-m...
             | 
             | Really awesome charts here-
             | 
             | https://pcpartpicker.com/trends/price/video-card/
        
           | robotnikman wrote:
           | If I were Intel, I would see this as an opportunity to break
           | into the GPU market by releasing their GPU's at very
           | competitive prices and ensuring enough supply.
        
             | paulryanrogers wrote:
             | This is my hope for the Arch GPUs as I'm in the market for
             | a cheaper--if less powerful card. Sadly their performance
             | with OpenGL isn't great, apparently because of an emulation
             | layer.
        
             | wing-_-nuts wrote:
             | Their drivers mean their performance is an order of
             | magnitude worse than nvidia or even amd. I would not buy an
             | intel gpu until it can give at least 6700 xt perf with rock
             | solid stability for less money.
        
             | Sakos wrote:
             | Arc GPUs already sell at a significant discount and are
             | competitive on performance. The problem is that the drivers
             | aren't mature enough and you can't count on that
             | performance. It's way too inconsistent to pay that much
             | for.
        
           | [deleted]
        
         | dragontamer wrote:
         | NVidia 3xxx series is flooding the shelves. NVidia wants this
         | product to sell out before they move on.
         | 
         | It doesn't make much sense for NVidia to increase production of
         | 4xxx series when there's so much 3xxx series sitting around in
         | warehouse inventory.
        
           | fbdab103 wrote:
           | Does a 4xxx card make sense for any pedestrian gamer?
           | Clocking in at >$1200, it is a hard swallow to say that the
           | extra FPS is worth it. Unless the price comes down massively,
           | the high sticker price (plus insane power draw), really leave
           | me wondering who is purchasing these things for anything but
           | machine learning.
        
             | Wohlf wrote:
             | They're not worth it at all. I have a 3080 for 4k/60fps
             | gaming without issues and I got it for $500 used. If a game
             | struggles to hold a consistent framerate it's usually an
             | issue with the game or certain settings, tweaking settings
             | is free so throwing hardware at it doesn't make sense.
             | 
             | Unless you're willing to spend $1000+ the real world
             | performance differences aren't even that large:
             | https://www.videocardbenchmark.net/high_end_gpus.html
        
         | plasticchris wrote:
         | The 4080 is reliably on shelves. It's just not a good value.
        
           | ninth_ant wrote:
           | It's not just about the 4080 though (though, you are right).
           | AMDs new cards are much better value for gamers, but they are
           | in this list too.
           | 
           | I think this is less about consumer GPUs and more about cost
           | cutting in big corps slowing expansions, and the reduction in
           | crypto demand.
           | 
           | Think about every tech company that says "oops we overbuilt
           | for covid, whelp let's lay everyone off" well they could be
           | buying fewer servers if they over-anticipated their needs in
           | that department too.
        
         | chacham15 wrote:
         | The problem is that the higher end GPUs are actually the same
         | chip as the lower end GPUs. The lower end GPUs are where the
         | manufacturing process had an error and thus they fuse off a
         | core. All that to say that they cant manufacture a high end GPU
         | without also manufacturing a low end one (or multiple depending
         | on the manufacturing error rate). So, if they cant sell the low
         | end one, it may not make sense to sell the high end one even if
         | there is a buyer.
        
           | ChuckNorris89 wrote:
           | _> The problem is that the higher end GPUs are actually the
           | same chip as the lower end GPUs._
           | 
           | Don't know where you got that info but that's definitely
           | false.
           | 
           | If you look at Nvidia's lineup, each GPU has a die that's
           | unique to that product in both size and markings. Sure, there
           | have been/are a few products that make use of the same die
           | but with defects depending on yelds, but those are usually in
           | the same performance class (1070, 1070TI and 1080 had the
           | same die), and not the case you're talking about of entry
           | level GPUs being high end GPUs dies with defects fused off.
           | That's never the case. An RTX 3050 die is a completely
           | different part than a 3080/3090 die.
        
       | satellite2 wrote:
       | > Slashing orders to a contract manufacturer is not trivial since
       | fabless chip designers are obliged to procure a fixed number of
       | wafers in certain quarters. Nevertheless, TSMC is reportedly
       | willing to accept compensation (as it will hold wafers with chips
       | from AMD, Intel, Nvidia, etc., before they are ready to buy them)
       | and even renegotiate deals on long-term supply contracts (i.e.,
       | increase the number of wafers that a company is committed to
       | buying in the future) in exchange.
       | 
       | Sounds like it might not be such a big deal for TSMC, at least in
       | the short term.
        
       | glass3 wrote:
       | > the utilization rate of TSMC's N7-capable lines will decline to
       | around 50% in early 2023.
       | 
       | Will that capacity be utilized by other companies? E.g. what is
       | preventing a RISC-V company from leap-frogging the competition?
        
         | monocasa wrote:
         | N7 is a rough node to target. You have the high capital costs
         | for NRE being an EUV node, but N5 is supposed to be cheaper to
         | manufacturer chips on pretty much as soon as N3 is in full
         | swing.
         | 
         | So those companies would probably be targeting something in the
         | range of 14nm to 10nm in order to take advantage of the fire
         | sale on late DUV tooling to prove that they can make a working
         | chip to investors, and then leapfrog to N5 after the giants
         | have jumped to N3.
        
         | wtallis wrote:
         | > E.g. what is preventing a RISC-V company from leap-frogging
         | the competition?
         | 
         | They would need to have already taped out on N7 and be ready to
         | start mass production _now_. That doesn 't happen overnight.
         | Even if you have taped out a ready-to-fab design, you usually
         | want to start small and run a few rounds of QA on small batches
         | of chips before you start ordering enough wafers to make a dent
         | in TSMC's schedule.
        
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