HIGH GDDR6 PRICES

GDDR6 prices have drifted upwards as the video card market modernizes. Last September the industry was able to keep up with demand but production issues have caused some supply disruptions.

NVIDIA was first to use GDDR6 on the RTX 2060, RTX 2070 and RTX 2080 cards.

AMD has been aggressive at clearing out old GDDR5 inventory as the new Navi cards are now using GDDR6 which puts more pressure on manufacturers.

The new RX 5700 series have been the most powerful cards so far. The less expensive RX 5600 series and RX 5500 series round out the graphics lineup.

Next-generation consoles to be released in 2H20 (i.e., Sony’s PS5 and Microsoft’s Xbox Series X) will be equipped with GDDR6 memory. Speculation that the new consoles will have 16GB will pressure manufacturing even more.

Samsung is the biggest manufacturer of GDDR6. SK Hynix and Micro also make GDDR6. Graphics currently consumes about 6% of the wafer capacity and the new consoles may increase demands for larger orders. Expectations for a 15% increase in GDDR6 will offset the decline in older GDDR5.

The existing Sapphire RX 480 uses GDDR5 and the next video card will have GDDR6 but the desire for a 16GB card may be too expensive in 2020.

NVIDIA Ampere has not been in the media for long time. Samsung is being contracted with for developing the new GPU. Expectations for a 20H2 launch are high.

GDDR6 prices seem to be about 60% more than GDDR5. This is due largely to the foundry tapeout costs. The positioning of 16GB cards at the high-end of the market is not very desirable.

It can be calculated (using the Micron prices) that total storage costs only about $35-$45 (GDDR5) or $55-$75 (GDDR6) for 8GB. Doubling the amount of storage to 16GB would also double the purchase cost, so the storage would cost around $70-$90 or $110-$150.