Friday, March 31, 2023

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AMD set up a logistics center in Taiwan to reduce transportation costs

In response to market news that AMD, a major processor manufacturer, intends to come to Taiwan to set up a logistics center, Taiwan’s graphics card industry said that this will help reduce the industry’s transportation costs and further improve the market competitiveness of its products. Happy to see it happen.

Currently, AMD ships its products from Taiwan to Hong Kong, and from there to the rest of the world. However, as geopolitics heats up, there is more and more interference from setting up the evil spirit center in Hong Kong, and most of the related graphics cards are in Taiwan, so AMD decided to relocate the warehouse from Hong Kong to Taiwan. This is another heavyweight GPU manufacturer choosing to invest in Taiwan after Huida intends to set up a logistics center in Taiwan. As for the relevant setting location, Huida chose the Farglory Aviation Free Trade Port Zone under Farglory, and AMD is also rumored to choose this location, which is expected to be announced after the Spring Festival in 2023.

Regarding Huida and AMD’s plans to set up logistics centers in Taiwan, the domestic graphics card industry also said bluntly that this will greatly help in reducing the transportation costs here. Because in the past, after purchasing GPUs from two companies, they were shipped from Hong Kong to Taiwan to produce graphics cards and then sold to the world. Now the cost of air freight from Hong Kong to Taiwan has been reduced, which has a considerable impact on the cost of Taiwan graphics card companies. big help.

As for the outlook of the graphics card market after the cost reduction, industry players admit that the Chinese market is not good, but the sales in the US are not bad, and the prices of graphics cards in Europe and the US seem to be stabilizing. Therefore, although the overall market conditions cannot be compared with the peak of the mining boom, the price of graphics cards should be at the bottom now. In general, the price of GPU has stopped falling due to the previous wave of inventory clearance. At present, it mainly depends on whether the price of DRAM bundled by GPU manufacturers can be stabilized, which will be the key to market recovery. At present, the graphics card industry is not expected to improve until the second half of 2023.

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