Nvidia will strengthen the RTX 30 series GPUs to counter the shortage

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Nvidia is reportedly limiting production of RTX 2060 graphics cards to bolster production of the RTX 30 series. The company has issued a notice to board partners that it will cut the supply of RTX 2060 chips in half in June in order to divert production resources to sought after RTX 30 series cards, which could help alleviate GPU shortages.

Chinese outlet ITHome uncovered some posts on Board Channels’ closed forum detailing Nvidia’s plans. This forum is closed to the public and focuses on distributors and board partners.

Dan Baker / Digital Trends

Since the onset of the GPU shortage, the RTX 2060 has been a popular choice. The card was one of the few options available at the beginning of the shortage, and while it is significantly less powerful than the RTX 3060, it still offers RTX features like ray tracing and DLSS at a reasonable price. Nvidia has ramped up production of these cards to combat the shortage, but they have been consistently sold out for many months.

The change of strategy may seem like too little, too late, but it’s actually a proactive move for Nvidia. There are many factors contributing to the GPU shortage, but one big one is the demand from cryptocurrency miners. The prices of popular coins like Ethereum and Bitcoin have seen steep drops over the past couple of months, which could ease some of the pressure on GPU supply. Nvidia also recently introduced Lite Hash Rate (LHR) GPU cores on its RTX 30 series cards that limit Ethereum’s hash rate.

Nvidia’s push for more production of its latest cards could mean the company sees a way out of the GPU shortage. Although Intel and IBM executives say the global semiconductor shortage will drag on for at least another year, lower demand from miners and the recovery of supply chains could help Nvidia deliver more graphics cards to gamers.

While this news indicates that more supply is decreasing, it doesn’t mean graphics card prices will drop. GPUs from China are still subject to high tariffs in the US, and recent reports suggest that the price of DRAM modules, critical for graphics cards, will rise in the coming months.

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