Graphics Card Shortages to Improve in May

"Sources" at graphics card makers told Digitimes that TSMC is increasing its manufacturing capacity and it should have some positive impact this month. There no further specifics how much the output of GPUs will grow.

However, we know that Nvidia is set to launch new graphics cards models (the GTX 670 and 610) and AMD is expected to react with price drops of the 7000 series. This should drive the cards closer to mainstream price levels.

AMD recently gained market share over Nvidia in the fourth quarter of 2011. Nvidia is set to report the earnings for its first fiscal quarter 2013, ended on April 29 2012, on May 11. Analysts generally expect the results to show weakness in GPU shipments due to the 28 nm production shortages.

Nvidia is also under pressure to move Kepler quickly into the mainstream with high volume products due to Intel's Ivy Bridge CPU, which are marketed by Intel as "good-enough" graphics engines that deliver enough horsepower for most PCs are sold today.

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