Chinese gamers and graphics enthusiasts are in a frenzy as the latest United States restrictions on exporting advanced semiconductors to China have caused a sudden shortage of Nvidia’s coveted GeForce RTX 4090 graphics card, a top-tier device cherished by the gaming and design communities across the nation.
Adding to the chaos, Nvidia, the globe’s most prized semiconductor manufacturer, has made the unexpected move of removing its RTX 4090 graphics cards and other offerings from its official store on the popular Chinese shopping platform Taobao.
Taobao is a branch of Alibaba Group Holding, the conglomerate that owns the South China Morning Post.
Hardware Partners Follow Suit
In a coordinated effort to address the restrictions, several major Nvidia hardware partners in China, including AsusTek Computer, Micro-Star International (MSI), and Colorful Technology from Shenzhen, have also withdrawn their RTX 4090 stock from their respective online outlets on platforms like Taobao and JD.com.
This collective action has only added to the mounting anxiety among consumers, questioning the availability of this premium graphics card.
Skyrocketing Prices
The sudden disappearance of RTX 4090 graphics cards from the Chinese market has resulted in the skyrocketing retail price of this coveted device.
Within a day of the US Commerce Department’s announcement of the latest tech export controls, the price surged to a staggering 15,000 yuan (approximately US$2,050) according to merchants at Shanghai’s sprawling electronics market.
Silence from Nvidia
Nvidia has maintained a stoic silence in response to the mounting crisis, refusing to provide any comments or clarifications on the matter.
US Export Restrictions Ripple Across the Chinese Market
The scarcity of RTX 4090 graphics cards in the expansive Chinese consumer market serves as a stark reminder of the far-reaching consequences of the latest semiconductor export restrictions imposed by the United States.
These restrictions reinforce measures that were initially introduced by the Biden administration in October of the preceding year.
Nvidia’s Struggles with New Restrictions
Nvidia finds itself in a particularly precarious position, as these new restrictions not only impact the RTX 4090 but also block sales of two less potent artificial intelligence (AI) graphics processing units (GPUs), namely the A800 and H800.
These specialized GPUs were specifically created for the Chinese market, representing modified versions of Nvidia’s high-end A100 and H100 chips.
These parent chips were previously prohibited from export to China under restrictions that were introduced in the previous year.
RTX 4090: A Powerhouse of Performance
The RTX 4090 graphics card, unveiled in September 2022, stands as a testament to cutting-edge GPU technology, built on the 5-nanometer chip manufacturing process.
It incorporates AI-powered chips that promise “enhanced creativity and ultra-efficient productivity” for tasks such as 3D rendering and 8K video editing.
It also caters to the need for “blisteringly fast gaming” on Windows-based personal computers, as highlighted on the Nvidia website.
Third-Party Brands Amplify the Impact
Although a plethora of graphics cards on the market bear the insignia of third-party brands like Asus, MSI, and Gigabyte, they invariably rely on GPUs from either Nvidia or Advanced Micro Devices.
Uncertainty Plagues the Market
As the turmoil unfolds, computer component retailer Zhou Da in Shanghai shared his insights.
He revealed that numerous customers had besieged him over the last couple of days, seeking information on the pricing of Nvidia’s graphics card and expressing concerns about potential disruptions due to the US restrictions.
He candidly admitted that, at this stage, the RTX 4090 may be slightly excessive for running video games. Nevertheless, he recommended his customers seize the opportunity and acquire it while they still could.
Colorful’s Empty Shelves
An employee from Colorful’s official Taobao store reported that all their RTX 4090 graphics cards had been completely wiped out by Wednesday. The future availability of the product remained uncertain.
Gigabyte Takes a Different Approach
In contrast, Gigabyte, a key partner of Nvidia, took a different approach. They simply labeled the RTX 4090 as “out of stock” in their online stores, indicating that they have not yet removed their inventory from the market.
Nvidia’s Move Causes a Stir on Weibo
The swift action taken by Nvidia and its partners in clearing out their online stock of RTX 4090 graphics cards has taken Chinese social media by storm.
The microblogging service Weibo witnessed a surge in discussions about this topic, but mysteriously, a message surfaced after midnight on Thursday, stating “unable to show the content of the topic, according to relevant laws and regulations.”
Avid Gamers Express Concerns
One Weibo user with the handle “Haofuqi” voiced their concerns, stating, “For those who already own a 4090 card, you should cherish it as much as you can. Imagine what will happen to the future generations of Nvidia graphics cards.”
Nvidia’s Uncertain Future in China
Nvidia issued a filing in which they expressed the possibility of seeking licenses for their products “to the extent that a customer requires products covered by the new licensing requirements.”
However, they offered no guarantees that the US government would grant exceptions or licenses, or do so in a timely fashion.
Third-Party Merchants Step In
For now, Chinese consumers can still find available stock of RTX 4090 graphics cards from various third-party sellers online as well as in physical retail stores.
However, the device now commands prices ranging from 40,000 to 50,000 yuan at some third-party stores on Taobao, nearly tripling Nvidia’s recommended retail price.
Gamers Weigh the Cost
“I plan to buy a 4090 card this year or next year after I save enough money for it,” said Richard Zeng, a dedicated PC gamer in Shanghai.
“But I don’t expect to pay an extra 20,000 yuan just because of the US sanctions.” The uncertainty surrounding the future of Nvidia’s graphics cards in China continues to loom large.