TL;DR
GPUs are still in short supply in 2025, but not as bad as during COVID. Only a few factories make them and GPU brands share production with many other industries. Building new factories is slow and costly. AI companies often get priority, scalpers still affect availability, and defects plus trade issues can add delays.
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Making more GPUs is not that simple
People sometimes think GPU makers can just produce more if demand is high. The problem is there are only a few factories in the world that can make the advanced chips inside GPUs. The biggest one is TSMC in Taiwan.
GPU brands like Nvidia or AMD design the chips but they do not own these factories. They have to book production time at third-party chip factories that also make chips for many other companies, including phones, game consoles, cars, and other electronics.
These factories are already running at full capacity and building a new one takes billions of dollars and about five years before it can start making chips. So even if the demand jumps, supply cannot be increased overnight.
Why they cannot just build more factories quickly
Building a factory for GPU chips is not like setting up a normal electronics plant. These chip factories, often called foundries or fabs, need extremely advanced equipment that can work at nanometer scales.
The tools alone cost billions and the whole project can take around five years from planning to production. Even if construction starts today, it will not help with the shortage right now.
There is also the problem of skilled labor. These facilities need engineers and technicians who are highly trained in semiconductor manufacturing, and there are not many of them available worldwide. So adding new factories is possible, but it is generally a slow and expensive process, not a quick fix.
Companies do not want to overproduce
GPU makers like NVIDIA and AMD have to guess how many units they can sell. If they make too many and demand drops, they risk losing money. If they make too few, people get frustrated.
To avoid that risk, many choose to produce less rather than risk being stuck with unsold stock.
AI and data centers get priority
Big tech companies often need GPUs for AI work and cloud servers. They are usually willing to pay much more than regular customers so manufacturers may give them priority.
That can mean many consumer-grade GPUs for gaming come later or in smaller batches.
Politics and trade issues slow things down
Trade restrictions, tariffs, and new rules can make it harder to move parts and materials through the supply chain. In some cases, manufacturers might need to redesign products to meet different market requirements.
These extra steps can slow down production and delay shipments.
Scalpers make the shortage feel worse
Scalpers are people who buy GPUs as soon as they go on sale, then resell them at higher prices. They often use bots to grab online stock faster than any human can click.
Even if the real supply is not that bad, scalpers can make it look worse because they remove cards from normal stores and flood resale sites with overpriced listings.
During the COVID period this was a huge problem and while it is not as extreme now, it still happens with new or high-demand models. It can make some people give up or pay more than they should, which keeps the feeling of a shortage alive even when production is slowly catching up.
Defects reduce the number of GPUs available
Sometimes GPUs are produced with defects or missing components. Those units cannot be sold, which lowers the number that reaches stores. Even a small rate of defects can make the shortage feel worse.
How things look in 2025
Supply is still not matching demand for the newest GPUs, especially those used for AI and high-end gaming. Today, stocks are better than during COVID but prices are still higher than they should be.
A simple way to picture it
Think of GPUs like a rare ingredient. Only a few kitchens can cook with it, and those kitchens are already booked months ahead.
Big customers reserve large amounts in advance, leaving less for everyday buyers.
Even if more kitchens are planned, they take years to build, so the shortage does not go away quickly.
Quick summary
- Only a few factories make GPU chips, and GPU makers do not own them.
- Building new factories is slow, expensive, and needs rare skilled labor.
- Manufacturers often avoid overproducing to reduce risk.
- AI companies and big tech can get priority because they pay more.
- Scalpers still affect availability, even if less than during COVID.
- Trade restrictions, redesigns, and defects can slow supply.
- Shortage is still here in 2025, but it is softer than the COVID-era crisis.
Read also: Why Are GPUs Much Bigger Than CPUs