TAIPEI (Taiwan News) — Taiwan's graphics card manufacturers are gearing up for a strong first half of the year, driven by the launch of next-generation GPUs from Nvidia and AMD.
Nvidia has unveiled its GeForce RTX 50 series, offering both high-end and mid-range models, while AMD is set to release its RX 9000 series by the end of Q1, CTEE reported. These launches are expected to drive demand, especially in the gaming sector, as gamers and eSports enthusiasts look to upgrade to the latest technology.
Taiwan's board manufacturers, including major companies like Micro-Star International (MSI), Chaintech Technology, Leadtek, Tul, and Biostar Microtech International, are preparing to ramp up production to meet this anticipated demand.
These new GPU launches are expected to boost revenue for these manufacturers, who are well-positioned to capitalize on the gaming industry's upgrade wave.
Graphics cards and gaming
A graphics card, or video card, is a crucial component in a computer, housing the GPU. The GPU, along with the CPU, acts as the brain of the system, according to StockFeel.
With the rise of graphically demanding applications, including gaming and eSports, GPUs have become a key driver of performance in modern computing.
Taiwan’s GPU market position
Taiwanese manufacturers hold a dominant role in the graphics card market, benefiting from strong supply chains and close collaborations with major GPU developers such as Nvidia and AMD. These partnerships enable them to produce and market complete graphics cards incorporating the latest GPU technologies.
A prime example is MSI's recent launch of its new graphics card series featuring the latest Nvidia GeForce RTX 50 series GPUs. The lineup, encompassing models like the Suprim Liquid, Suprim, Vanguard, Gaming Trio, Ventus, and Inspire, boasts enhanced cooling systems designed to handle the demands of these high-performance, next-generation processors.
Graphics card supply chain
The graphics card industry involves a complex supply chain, with numerous participants, including companies producing GPU chips, PCBs (printed circuit boards), and heat sinks. The market for graphics cards can be broadly categorized into two main segments:
- Specialized graphics card manufacturers: Companies like Tul and Leadtek focus primarily on the design and production of graphics cards.
- Diversified technology companies: Companies such as MSI, Gigabyte, and AsusTek Computer offer a wide range of products, including graphics cards, computer peripherals, and servers, catering to various market needs beyond gaming.
Some graphics card companies saw double-digit declines in January revenues, attributed to an earlier-than-expected stock-up effect in Q4 and a reduced number of working days in January.
The sector also faced limitations due to restricted graphics card sales in China. However, these manufacturers anticipate ramping up production and shipping volumes in the latter half of Q1 and Q2.
Company revenues for January:
- MSI: NT$16.65 billion (US$507 million), the third-highest revenue in company history
- Leadtek: NT$269 million, down 71.34% month-on-month
- Chaintech: NT$436 million, down 45% month-on-month, but up 3.84% compared to the same period last year
- Tul: NT$528 million, the third-highest January revenue in 20 years
- Biostar: NT$1.7 million, up 15% month-on-month, but its graphics card business saw a 30% year-on-year decline; expects recovery with the release of AMD's RX 9000 series
Despite these mixed results, manufacturers are generally optimistic about the market outlook for the year. However, concerns over the impact of the Trump administration’s additional tariffs on Chinese imports to the US, along with the effect of last year’s advanced stock-up orders on Q1 shipping momentum, have prompted companies to closely monitor these factors as they could affect demand in the coming months.
