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Can really Nvidia say no ? They are making 78% of margin on those chips - I would think that that leaves a lot of bargaining power to TSMC. They would loose mu
by TheAlchemist 2y ago
Can really Nvidia say no ?
They are making 78% of margin on those chips - I would think that that leaves a lot of bargaining power to TSMC. They would loose much less than Nvidia.
- nabla9 2y agoYou can't do shakedowns for your second best customer. Nvidia works also with Samsung for new 3nm nodes. Prices are defined by the profit margins of Nvidia's closest competitor (AMD 4.89%.)
- TheAlchemist 2y agoWhy not ? Nvidia may be working with Samsung, but they don't have any alternative for now. So my understanding is, that TSMC currently has the monopoly on producing Nvidia chips, and Nvidia obviously has the monopoly on selling those chips. And somehow, Nvidia is extracting 99% of profits from that situation, while TSMC is getting close to nothing. My understanding of game theory is that it should be way closer to an even split. Could you elaborate on why the prices are defined by AMD margins ? I'm obviously missing something, but can't see what.
- purple_ferret 2y ago>You can't do shakedowns for your second best customer. Except Nvidia is shaking down its best, second best, and all the rest of their customers!