I’m Sorry but...Things just got a lot worse for Gamers...

[Music] okay guys we just got some news on the shortages that we're dealing with chip shortages around the world unfortunately it's not good news understanding and analyzing data is critical no matter what industry you're in with datacamp you can learn data science today and apply it tomorrow acquire skills faster with over 300 courses and interactive learning experiences if you've ever wanted to learn python they have a great course on an introduction to python or maybe you want to learn sql and you can use their introduction to sql course combine video classes with practical exercises and skills assignments to help guide you the lessons are bite-sized and can fit your schedule and their mobile version allows you to learn from anywhere at datacamps descriptions start at only 25 a month for unlimited access to their courses so use my link in the description below and you can check out the first chapter of any course for free all right so the shortage about of graphics cards and cpus is not we've talked about this a bunch of times and i think a lot of people might still be a little bit lost on what's happening but we've got a little bit more insight on when we can expect to see some light at the end of the tunnel the problem is i feel like we still are just entering the tunnel and the reason for that is uh tsmc just had its investor call what does an investor call well when you're an investor you're privy to information directly from the company which you're investing they usually will do it quarterly sometimes it's annually depending on the way the investments are set up but i digress besides the point the ceo from tsmc just had its investor call where that information becomes public because it is a publicly traded company and so they give you some insights as to what's happening what's happened in the past where what are the trajectories where's the business uh you know what direction is the ship heading and is it heading into ship that you want to continue investing in so one of the things that obviously is going to be on the top mind or the mind of any of the top investors especially with a company like intel or tsmc which by the way are the two major manufacturers of socs chips uh semiconductors all that sort of stuff basically said that uh things are obviously a little bit dry at the moment there is a huge demand and they don't necessarily see that ending anytime soon in fact rather than just sort of paraphrase i'll go ahead and give you some direct quotes here um these are quotes from tsmc's ceo now they told investors during its earnings call that the company had not ruled out ship shortages shortages extending into 2022. now if you've been paying attention you know that 2020 when the new graphics card from new graphics cards from nvidia obviously 30 series launched and then new stuff you know rdna 2 launched from amd they obviously were paper launches according to people because the demand dramatically outweighed the amount of supply ergo supply and demand which is a very basic concept when it comes to the market however tsmc is the major manufacturer for all things intel or excuse me no not intel intel's all things manufacturing for intel they're their own production facility but tsmc is the major manufacturer not just for amd's ryzen cpus and radeon gpus but many other customers a lot of them much smaller than amd and whatnot but major customers in the automotive industry um custom circuits and boards that are designed for custom machinery all sorts of things and so what they basically said here is uh so they were asked how long this is going to go on and their their response was well goku that person who asked i guess let me answer the question carefully because we cannot rule out the possibility of inventory correction or overbooking something like that so what they're saying is they can't rule out the possibility of demand continuing to exceed the supply which is where we are obviously right now and i was obviously exacerbated by exacerbated by the pandemic but all that did was create a greater demand at a time when production was ramped down now that did not trigger necessarily the shortage of socs right now and micro uh semiconductors but it obviously contributed to the problem they said but actually we expect the structural demand to continue and we will work with our customer closely actually to develop some technology solution to meet customers requirements and create differentiation and long lasting value to our customer as a result actually we see the demand continue to be high and the shortage will continue throughout this year and maybe extend it into 2022 also so what they are saying is a very very uh probably lawyer friendly wording of demand is going to continue to be higher than our production now what they're doing about this and intel's basically saying the same thing they are ramping up production they are creating new production facilities the problem is it takes several years to ramp up those facilities this is something that tsmc saw coming a while ago and they started to create new production plans however you can imagine the amount of uh complexity that there is to creating and building robots that build other robots to build your stuff is extremely time consuming now imagine there's a shortage of these chips and stuff which means you're gonna have a hard time also creating for yourself because you now have to make this decision of how much of the stuff that you're creating in terms of you know building chips are going to be needed obviously you know many chips are probably used in a chip creating factory like that's probably an insane number i would have to imagine so you've got the people knocking down your door to get your product when you need your own product to build their product so we're in a really interesting time and it's obviously been compounded by the fact that everything we use today has microchips in them now tsmc isn't the only one going through this foxconn has gone through this remember some of the iphone shortages but you know it's funny how they're able to ramp up obviously to a very large capacity um samsung also manufactures chips intel also manufactures chips in fact intel also uh had a statement for this this is from pat gelsinger basically they said they have the same concerns over chip shortages they said we do believe we have the ability to help i think it's a couple of years until you are totally able to address it it just takes a couple of years to build capacity now that may sound like as gamers might be like what do you mean a couple of years if you think about the complexity of these factories to build one in a couple of years is actually a pretty monumental task and i think it's actually quite impressive so let's talk about what this means now for gamers they basically were saying here um the automotive industry is one of the industries that's leaning on this the hardest it's kind of creating the shortage in the sense that automobiles are having more computers in them than ever the major push for all electric cars means that you're seeing a lot more smart features built into them which have different computers to control different things it's not just one computer that controls everything you have your engine computer you have a transmission computer if it's a gas powered engine you have your uh your heck in my camaro i have a differential computer because it's an edif you've got uh your body control modules which control things like lights and door locks and windows and then you've got your abs module which is independent from everything else for your automatic brakes you've got your airbag module which is separate from all of that stuff and redundant and backed up because obviously it's a safety feature so you think about all of these different chips that go into making an automobile and how many automobile manufacturers now are making these very advanced cars you can see how uh it all kind of came at a time when it sort of just intersected where we are right now with the pandemic and the demand creating this shortage now gamers are going to continue to have to deal with things like the newegg shuffle the the evga program where you can sign up and basically it's it's like first come first serve on getting your graphics card you get notified you have so much time to respond you get to buy your card off you go but that also means that you're going to be dealing with scalpers for a long time because this is also a huge scalping opportunity you get your hands on a shiny 30 series card it's like basically being handed its weight in gold and considering how heavy some of the cards are that's a very hefty amount of gold and it's unfortunate because that's where opportunists um look for these opportunities and they always have their ears to the ground and you guys already know this they will jump from industry to industry whether it would be shoes or headphones or now graphics cards and pc components because anywhere there's a shortage and a high demand you have opportunity for profit and that's unfortunately what we're dealing with now i mean there is there are companies out there that are doing everything they can to sort of combat that but at the same time it's an opportunity for some of these companies to also kind of stay afloat by increasing prices now here's here's where i think this is a double-edged sword when it comes to oh my god jay is agreeing with them increasing the prices no i'm saying i understand the way the market works let's say you're you know xyz graphics card company and you have to keep you know your staff going your warehouse going and all that but you don't have product to sell in the volumes of which you're used to which means that you can't keep paying the bills so you have a choice to make do you start laying off people do you start closing distribution centers or warehouses or do you start to increase pricing to keep things basically across the board the same with lower volume bringing in at least the bare minimum you need to stay operational so that's just the way um you know operations work and i think most people watching this video could actually understand that it sucks it's obviously not something anyone's looking forward to and this news unfortunately makes there be a lot more incentive for scalpers to continue hitting hard to try and get these graphics cards wherever they can so that they can also keep the prices up and you know two three times their their msrp value now at street value making things just look really bad for gamers here in the near future you know i i wish i could say we as gamers we should band together and do something but what are you gonna do there's absolutely nothing you can do i don't want to say gamers are low on the totem pole when it comes to the priority because obviously it's like it's like a colony of ants right one ant or ten ants by itself is pretty insignificant but when you got millions of ants they could carry away a freaking cow if they want so there's obviously a huge market for that i mean companies like amd and nvidia obviously highly lean on gamers when it comes to making up a huge portion of their market but a lot of these companies have also started diversifying into other fields like nvidia getting into smart cars and obviously ai and and uh you know what machine learning and they've made that a huge focus for them but they also all rely on the same products in which you are having a very hard time getting your hands on especially raw materials to make your product amd is not happy about the fact that tsmc can't produce the product that they're that they're buying from them fast enough so that they can get them into the hands of consumers uh to you know obviously bolster their brand and this probably couldn't come at a worse time for amd because they were making severe headway on taking back market share from both nvidia and intel when it comes to their graphics and their cpus i mean since we saw the the ryzen cpu launch back in 2016 it has been an absolute force to be reckoned with in terms of just making right decisions right choices making an amazing product and winning back the trust of the consumer now you have consumers that are basically buying anything they get their hands on whether it be intel or amd because you don't know whether or not you're gonna have an opportunity to buy any product in the near future and if this continues on to 2022 well that's just going to suck so anyway i just wanted to kind of bring you this little bit of a news piece letting you guys know i've seen people say just just one more month or two and it's going to be back to normal no that i mean there you can see these ceos are preparing you for you know this could be around for a while and definitely into 2022. it will end it will come back to normal once these other manufacturing facilities come online unfortunately it just takes time for those to be built you can't just snap your finger and have a production plant be up and running it's not like simcity you can't just drop one it takes time okay speaking of time we've got some time left obviously in our giveaway you can't get your hands on these graphics cards but i am giving away two of them and i'll tell you more about it right here before you close that video guys i am doing another graphics card giveaway because things suck in terms of trying to buy them i want to be able to give someone out there an upgrade or a graphics card that's missing out of their system so click the link in description below that talks all about our giveaway and you can find out how you can win either our gigabyte rtx 3080 or our second place winner will get an rtx 2080. so good luck click down below to learn more

Channel: JayzTwoCents

Views: 1,264,933

Keywords: GPU, 3080, 3080ti, 3070, 3070ti, When will GPUs be available, When will video cards be available, Where are all the video cards, Where are all the GPUs, Nvidia, Intel, AMD, Radeon, GPU shortage

Id: BVxvH3Qabgw

Length: 12min 49sec (769 seconds)

Published: Sun Apr 25 2021