GPU shipments expected to increase soon as ABF substrate shortage eases
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A positive GPU story? Yes! There may be some light at the end of the tunnel, as reports suggest that supplies of key materials will improve due to sluggish production growth.
According to Digitimes (via Tom’s Hardware) substrate shortages, especially Ajinomoto build-up film (ABF) substrates, are an underestimated factor in GPU shortages. ASRock and TUL (Powercolor’s parent company) are reportedly looking to increase GPU shipments in the second half of 2022, as the supply of ABF substrate materials improves.
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ABF substrates are essential materials in advanced semiconductor manufacturing. Circuits need to be created to connect nanoscale microprocessor chip terminals to larger terminals on a printed substrate. It’s just one of many materials required for chip manufacturing, and it’s another example of how complex the chip supply chain can be and how vulnerable it can be if there is a disruption.
ABF manufacturers are ramping up production to meet the additional demand created by the pandemic and by miners. Obviously, advanced electronics manufacturing facilities can take years from the planning stage to when products leave the warehouse. We’re two years into the pandemic, so it can be expected that the plans laid out in mid-2020 will come to fruition sooner rather than later.
Bottlenecks like these can lead to downstream shortages that affect the entire industry. GPUs are made up of a large number of components that have their own materials and suppliers, as well as the tools and facilities to manufacture them. It’s not just a matter of increasing chip production with the flick of a switch.
It’s interesting (or maybe coincidental) that ASRock and Powercolor only make AMD graphics cards, and it’s unclear if those companies simply got more ABF substrates, or if they got word from AMD upstream that it did. Not that it really matters. Already giving gamers more damn GPUs. Good news is good news.
One month has passed since 2022, so the second half of 2022 will soon be over. A sharp drop in cryptocurrency prices could cool new mining purchases. In fact, GPU prices declined throughout January in some regions. Hopefully this isn’t the last positive story we’ll write about GPUs in 2022. We need something to cheer about!
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