AMD's Radeon RX 7900 Series Soars in China Amidst NVIDIA RTX 4090 Ban

In an unexpected turn of events, the recent ban on NVIDIA's GeForce RTX 4090 under new US policies has inadvertently boosted the demand for AMD's Radeon RX 7900 XTX and 7900 XT GPUs in the Chinese market. These AMD graphics cards, known for their high VRAM capacities of 24 GB and 20 GB, are now considered viable alternatives for both gaming and AI applications.

However, the surge in demand has caught AMD off guard, leading to significant supply shortages. Sources suggest that these shortages are expected to persist not only in the fourth quarter of 2023 but also extend into the first quarter of 2024. The scarcity is attributed to insufficient production planning by AMD, creating a challenging situation for meeting the growing demand.

Adding to the complexity, an internal memo from Dell has hinted at potential restrictions on the sale of the Radeon RX 7900 XTX in the Chinese market. Although this primarily affects the OEM segment, retailers may exploit the situation, leading to artificial price hikes. The ban on RTX 4090 has already triggered price increases for AMD Radeon RX 7900 XTX and 7900 XT GPUs in recent weeks.

Despite the challenges faced by AMD, NVIDIA is responding to the market shift by introducing the GeForce RTX 4090 D, tailored to comply with US policies. While featuring reduced specifications and performance, this move aims to maintain NVIDIA's dominant position in the Chinese market.

Official prices for the Radeon RX 7900 XTX and RX 7900 XT are set at 7999 RMB and 7399 RMB, equivalent to $1130 and $1040 US, respectively. Although there was a significant price drop earlier in the year, current shortages are expected to drive further price increases in the coming months.