GPU Manufacturers: Increase In Production Before Tariffs Apply And Then Sell The Stock When The Tariffs Are In Effect

Expert Verified By

The New Reality of GPU Prices.

Story Highlight
  • Graphics card manufacturers are increasing their production in anticipation of potential US tariffs on Chinese goods, despite a current temporary pause in the trade dispute.
  • This production increase is focused on more profitable mid-range and high-end models, which could lead to shortages of budget-friendly cards.
  • Any new tariffs would likely push prices well beyond official MSRPs.

The tariff issue has calmed down after the recent lull. The Trump administration’s tariff plans have been temporarily paused. However, the situation remains volatile, and as a result, our industry is looking ahead.

Reportedly, graphics card manufacturers want to ramp up graphics card production before the deadline of July 9th to make more money.

The underlying issue of tariffs between China and the US continues to impact businesses and the supply chain. The temporary peace agreement is only a short time to change strategies without knowing what’s coming. That’s why they are ramping up graphics card production, as the move is beneficial for consumers.

The MSRPs set by NVIDIA and AMD are now essentially a joke, as manufacturers operate with such narrow margins. The great majority of graphics card models fall below these prices, and those that can afford them are fortunate. At the absolute least, things will worsen significantly in the US. And after that, they will most likely expand to South Korea, Japan, and Europe.

Nikkei Asia reports that both MSI and GIGABYTE are increasing graphics card production to increase stock availability after the tariffs. Joseph Hsu, the president of MSI, disclosed the strategy to accumulate stock headed for the US to “meet market demand.”

Additionally, since they will be concentrating on the most interesting markets, the mid-range and premium segments, the stock may be higher in these and nearly zero in the other models.

This is a wise strategy, as a large number of graphics cards will sell at a higher price with greater profit under the guise of tariffs.

In any event, manufacturers benefit from increasing graphics card production now, tariffs or not, as consumers will rush to purchase due to fear of price increases.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

New Silent Hill f Xbox Ad Reminds Players: You’re Buying A License, Not The Game

Xbox is marketing Silent Hill f with a tag underneath stating that you will only purchase the license to play the horror title.

Over 60% US Gamers Buy Two or Fewer Games Per Year

Only 14% of games in the US buy new games regularly, and they are the main drivers of the paid game market.

Ready or Not Exec Criticizes Crossover Skins; Says He Hates What Realistic Shooters Have Become

The team behind Ready or Not does not appear too fond of over-the-top crossovers like those from Call of Duty.

AMD Engineer Confirms Next-Gen Xbox Development Moving “Full Steam Ahead”

An AMD engineer has revealed that the next-gen Xbox is under development, but it isn't necessarily a traditional console.

Assassin’s Creed Mirage New Update Brings Back Classic Parkour Elements That Made The Series Popular

The new Assassin's Creed Mirage free update brings back classic parkour elements like manual jump and more, as per fans' demands.