Saturday, June 10th 2023

GDDR6 VRAM Prices Falling According to Spot Market Analysis - 8 GB Selling for $27

The price of GDDR6 memory has continued to fall sharply - over recent financial quarters - due to an apparent decrease in demand for graphics cards. Supply shortages are also a thing of the past—industry experts think that manufacturers have been having an easier time acquiring components since late 2021, but that also means that the likes of NVIDIA and AMD have been paying less for VRAM packages. Graphics card enthusiasts will be questioning why these savings have not been passed on swiftly to the customer, as technology news outlets (this week) have been picking up on interesting data—it demonstrates that spot prices of GDDR6 have decreased to less than a quarter of their value from a year and a half ago. 3DCenter.org has presented a case example of 8 GB GDDR6 now costing $27 via the spot market (through DRAMeXchange's tracking system), although manufacturers will be paying less than that due to direct contract agreements with their favored memory chip maker/supplier.

A 3DCenter.org staffer had difficulty sourcing the price of 16 Gb GDDR6 VRAM ICs on the spot market, so it is tricky to paint a comparative picture of how much more expensive it is to equip a "budget friendly" graphics card with a larger allocation of video memory, when the bill-of-materials (BoM) and limits presented by narrow bus widths are taken into account. NVIDIA is releasing a GeForce RTX 4060 Ti 16 GB variant in July, but the latest batch of low to mid-range models (GeForce RTX 4060-series and Radeon RX 7600) are still 8 GB affairs. Tom's Hardware points to GPU makers sticking with traditional specification hierarchy for the most part going forward: "(models) with double the VRAM (two 16 Gb chips per channel on both sides of the PCB) are usually reserved for the more lucrative professional GPU market."
Trendforce anticipated some of this market movement with their prediction from last September: "In terms of Graphics DRAM...(we expect) another round of price cuts for graphics cards. However, various types of terminal promotions can only eliminate preexisting inventory, which possesses limited value in driving new demand. Demand for GDDR6 8 Gb and 16 Gb has weakened simultaneously due to buyer inventory adjustment. Buyers' purchasing volume was not stimulated even though DRAM suppliers slashed prices in 3Q22. Therefore, preexisting graphics DRAM inventory continues to pile up, creating greater pressure coupled with the gradual production of previous wafer starts. From the perspective of 4Q22, although there are only two GDDR6 8 Gb suppliers, Samsung and SK Hynix, due to huge inventory pressure the two parties will inevitably compete for orders by undercutting the other's pricing. Therefore, the price decline of GDDR6 8 Gb chips in 4Q22 may be higher than GDDR6 16 Gb, lowering prices by approximately 10~15%."
Sources: Trendforce, Hardware Subreddit, Dram Exchange, Tom's Hardware, 3DCenter.org Tweet
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56 Comments on GDDR6 VRAM Prices Falling According to Spot Market Analysis - 8 GB Selling for $27

#51
dgianstefani
TPU Proofreader
Chrispy_This article is false; Nvidia said 8GB costs $100.
They wouldn't lie to you or scalp you, would they? They're kindhearted, generous, pro-consumer, and fair, right?


I'd buy a 16GB 4060Ti if it only cost $29 more than the 8GB variant.
It's still not a great deal, but I'd buy it as a midrange card that has a future, instead of a midrange card that doesn't.
8 GB of VRAM costs $27. That's based off the 8 Gb chip price, so you'd need eight chips, for 8 Gb. Adding 8 GB extra to the 4060 Ti costs more than $27, guaranteed.

I don't know what the 16 Gb (2 GB) chips cost, but the article states they aren't getting cheaper at the same rate.

To get 16 GB on the 4060 Ti, they'd need to use memory chips on both sides, as the PCB uses 4x 2 GB (16 Gb) chips. So you can't directly assume that costs $27 in raw materials, as that would be adding another eight for a total of 16 instead. You also need to account for BOM of a more complex PCB, power delivery etc, as others have stated.

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#52
R0H1T
These are spot prices, Nvidia almost certainly gets a major discount on them. Exact pricing would also be a secret but after Apple they probably have the biggest clout in terms of pricing here!
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#53
Wirko
I'd actually expect such a large consumer of chips to buy them by the wafer, then take care of packaging, testing and binning themselves (and branding of course). That's what is often done with NAND chips, and at least in the past, system memory RAM chips.
R0H1TThese are spot prices, Nvidia almost certainly gets a major discount on them. Exact pricing would also be a secret but after Apple they probably have the biggest clout in terms of pricing here!
They buy based on long term contracts, which probably allow both parties to re-negotiate the prices and quantities on certain conditions, for example when a big change in free market prices occurs.
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#54
ixi
And here we are. Paying fot 8GB more than 600 peso :D
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#55
Chrispy_
dgianstefaniI don't know what the 16 Gb (2 GB) chips cost, but the article states they aren't getting cheaper at the same rate.

To get 16 GB on the 4060 Ti, they'd need to use memory chips on both sides, as the PCB
My comment was tongue-in-cheek, but either way, spot cost of 16Gbit chips is irrelevant, Nvidia aren't paying spot pricing. Nvidia's profit margins are about 70% based on the latest report. 70% more than spot pricing still gives us a 16GB 4060Ti for only a $50 price hike, so the $499 MSRP is a 200% insult over Nvidia's already silly 70% profit margin.

I get it, adding more VRAM to a card isn't as simple as magicking more packages onto a PCB, but it's also not an unsolved problem and both AMD and Nvidia have been offering multiple VRAM sizes for a decade without such a ridiculous pricing gap.
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#56
Totally
Chrispy_My comment was tongue-in-cheek, but either way, spot cost of 16Gbit chips is irrelevant, Nvidia aren't paying spot pricing. Nvidia's profit margins are about 70% based on the latest report. 70% more than spot pricing still gives us a 16GB 4060Ti for only a $50 price hike, so the $499 MSRP is a 200% insult over Nvidia's already silly 70% profit margin.

I get it, adding more VRAM to a card isn't as simple as magicking more packages onto a PCB, but it's also not an unsolved problem and both AMD and Nvidia have been offering multiple VRAM sizes for a decade without such a ridiculous pricing gap.
I was debating on whether to chime in on this but your comment came very close to what I was about to say. It is a simple affair for AMD/Nvidia bc they do take a modular approach to designing their pbc. yeas there added costs to increasing the RAM but it's negligible since provisions for doing so are already in place it's not like they are doing a complete retrofit to an existing design, might as well design a new card at that point.
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