Graphics cards could become even more expensive in 2020

The signs for GDDR graphics memory are not good pricing wise, market research institute Trendforce expects a jump in prices for GDDR video memory to rise in the upcoming quarter

This is reported by the market research institute Trendforce and the DRAMeXchange subdivision, which specializes in memory. Accordingly, the price of graphics memory (GDDR) will rise significantly in the first quarter of 2020.

DRAMeXchange cites the price increase for server DRAM expected by the high demand, as a result of which the price for video memory, which is even more sensitive to market changes, is increasing. Since OEM customers would also increase their inventories, the contract prices for GDDR-VRAM are expected to increase by more than 5 percent across all quarters.

In addition, DRAMeXchange expects a drastically increased demand for fast GDDR6 video memory in the coming year. Both Nvidia and AMD already fitted their current products with GDDR6, but in 2020 even more graphics cards will probably be equipped with even larger video memory - not to mention Intel's Xe GPUs.

Then another segment jumps in, the next-gen consoles Xbox Series X and PlayStation 5, which will also have GDDR6, will also be released towards the end of the year. A whopping 16 GB are topic of discussion for the Xbox Series X, and something similar is expected for the PS5.

GDDR video memory also has the highest production cost per chip. According to the DRAMeXchange, the prospects are anything but rosy. The only glimmer of hope is an increase in production capacity at the three major manufacturers Samsung, SK Hynix and Micron - however, more than 15 percent are not expected by the end of 2020.