AMD to Raise Graphics Card Prices by at Least 10% in August Amid Memory Shortages

AMD is set to increase the prices of its graphics cards by a minimum of 10% starting in August, according to recent updates from Chinese Board Channels. This move comes in response to ongoing global shortages of GDDR6 memory, a critical component in modern GPUs. The price hike, initially expected in July, has been postponed by about a month, giving consumers and industry partners a brief reprieve before the changes take effect.

Impact of Memory Shortages on GPU Pricing

The graphics card market has been significantly affected by supply chain constraints, particularly in the availability of GDDR6 memory. AMD sources its GPU dies from TSMC and collaborates with leading memory manufacturers such as SK hynix, Micron, and Samsung to secure GDDR6 chips. These components are bundled together to create GPU kits, which are then distributed to AMD’s add-in board (AIB) partners for final assembly and retail.

With the cost of GDDR6 memory rising, AMD has informed its AIB partners that the upcoming price increase will be at least 10%. While this represents a baseline adjustment, the actual increase could be higher for certain models, especially those equipped with larger amounts of VRAM.

Which AMD Graphics Cards Will Be Most Affected?

Graphics cards featuring higher VRAM capacities are expected to see the largest price jumps. For example, premium models like the RDNA 4-based Radeon RX 9070 XT 16 GB are likely to carry a premium exceeding the 10% baseline. In contrast, entry-level and OEM-exclusive models, such as the Radeon RX 9050 4 GB edition, will likely see price increases closer to the minimum, as these cards require fewer GDDR6 chips.

AMD’s Pricing Strategy in Response to Market Dynamics

The timing of AMD’s price adjustment appears to be strategic. Reports indicate that AMD waited for NVIDIA to implement its own price increases before finalizing its approach. By aligning its pricing with NVIDIA, AMD aims to remain competitive across similar product categories. Currently, AMD’s RDNA 4 lineup is focused on the mid-range segment, and the company does not offer a high-end solution to directly challenge NVIDIA’s flagship GPUs in terms of performance or pricing.

As the graphics card market continues to navigate supply chain challenges and fluctuating component costs, consumers can expect further shifts in pricing and availability. AMD’s latest move underscores the ongoing impact of memory shortages on the broader PC hardware ecosystem.