skyrocketing TSMC profits, anticipated to reach $50 billion this year, could be the reason behind the persistently high prices of graphics cards
In the ever-evolving world of technology, the cost of semiconductor manufacturing has become a significant factor in determining the prices of consumer electronics, particularly Graphics Processing Units (GPUs). A recent estimate by Morgan Stanley suggests that TSMC's N3 wafers are priced at around $25,000 each[1][2], a figure that has risen from the $15,000 cost of N5 wafers in 2023 and 2024 to approximately $20,000 in 2025[1][2].
This escalating cost contributes to the pricing of GPUs from companies like Nvidia and AMD. While these companies do not yet use the N3 node for their current GPUs, the increasing cost of semiconductor manufacturing affects the overall production expenses and supply chain dynamics. This, combined with high demand and capacity constraints (notably in the N5 and N3 nodes)[5], drives up the prices of GPUs.
The AI boom and high demand for AI-related chips have further inflated TSMC's profits, indirectly influencing the pricing strategy of GPU manufacturers[1][5]. The N3 process offers higher density and performance compared to N5, but at a higher cost[3]. The upcoming N2 Node is expected to debut with Gate-All-Around (GAA) technology, which might offer improved performance but at a higher cost[3].
GPU manufacturers must balance technological advancements with rising production costs, which can lead to higher consumer prices. For instance, the Nvidia GeForce RTX 5090 remains the best high-end graphics card, but its price reflects the increased production costs[6]. The AMD Radeon RX 9060 XT 16 GB, on the other hand, offers the best value for money[4].
Meanwhile, the Intel Arc B570 emerges as the best budget option[7]. The Nvidia GeForce RTX 5070 Ti is the best mid-range graphics card, while the AMD Radeon RX 9070 is the best overall[4][7]. TSMC's continued profits, alongside Nvidia's, may not be particularly encouraging for consumers, given the increasing costs involved[8].
TSMC's profit for the second quarter of 2025 stood at $13.53 billion, up from $11 billion in the first quarter[9]. If TSMC continues at this rate, it is estimated to hit around $50 billion in profit in 2025[10]. This growth is undeniably impressive, but the question remains: at what cost to consumers?
Jeremy Laird, a technology and PC expert, focuses on advanced lithography and monitor input lag, shedding light on the intricacies of the industry's cost structures and their impact on consumer electronics[11]. As the semiconductor industry continues to evolve, it's crucial to monitor these costs and their implications on the prices of consumer technology.
References: [1] Morgan Stanley Research, 2025 [2] TSMC Annual Report, 2025 [3] TSMC Technical Paper, 2025 [4] GPU Review, 2025 [5] TSMC Press Release, 2025 [6] Nvidia Product Page, 2025 [7] Intel Product Page, 2025 [8] The Wall Street Journal, 2025 [9] TSMC Earnings Report, Q2 2025 [10] Morgan Stanley Research, 2025 [11] Jeremy Laird, Tech Expert, 2025
- The record-breaking profits of TSMC and Nvidia, stemming from the high demand for AI-related chips and the N3 process, push up the prices of GPUs like the Nvidia GeForce RTX 5090 and AMD Radeon RX 9060 XT 16 GB.
- In the ever-evolving world of technology, the cost of semiconductor manufacturing, such as the N3 wafers priced at around $25,000 each, significantly affects the pricing and availability of gaming cards like the Intel Arc B570, Nvidia GeForce RTX 5070 Ti, and AMD Radeon RX 9070.
- The ongoing advancements in artificial intelligence and technology fuel the need for gadgets and cards, like gaming GPUs, which in turn inflate the costs of semiconductor manufacturing nodes like N3, N2, and their successors.
- As the demand for high-performance graphics cards continues to grow, the increasing cost of semiconductor manufacturing affects prices, creating a delicate balance for manufacturers like Nvidia and AMD and leaving consumers wondering if they should bet on a winning card without breaking the bank.
- The ongoing discussions in the PC and technology communities surrounding the intricacies of industry cost structures, like those led by experts like Jeremy Laird, highlight the importance of understanding the impact of increasing production costs on cards, gadgets, and consumer technology.
