Why do AMD Ryzen 7000 processors and motherboards cost so much?

The tables have completely turned from a few years to now. AMD has always been considered “the company of the people”, mainly because it offered a better performance/price ratio, which was sometimes accompanied by better consumption. But with the new processors and boards, this has ceased to be the case and its great rival is now ahead in those two determining facets. Because the price of the Ryzen 7000 and its motherboards is it so high? Can AMD do anything to reduce them?

Without a doubt, Zen 4 is a leap forward compared to Zen 3, but as a platform it generates many doubts for the average user, since its value is much higher than the platform of Intel LGA1700board options are fewer, you can’t go for DDR4, and prices are through the roof.

Price adjustment is at the limit of profitability

What we have seen since they were introduced and launched on the market is an adjustment of approximately one 5% or 6% on average in the Ryzen 7000 range, that is, prices have dropped by those percentages, but they have stagnated there.

The reasons why they are so high are several, and these make them less attractive for the user to buy a Ryzen compared to a Core 13. First of all, and on average, Intel processors are faster in gaming and cheaper, quite a bit. cheaper, in addition, now they have more cores than their red rival at the same price range.

The price of the Ryzen 7000 and its motherboards can’t get down and compete with Intel because right now AMD can’t push them down, and we explain ourselves. Then, there is an excess of inventory of some processors that have been manufactured with very high prices and in addition, the sales of the Ryzen 5000 reduce that of these new CPUs.

Therefore, AMD does not want to lose any more money after the price adjustments it has already made, it is rumored that they are at the limit of profitability for what it has cost to manufacture them plus their R&D and advertising.

The design and manufacturing cost according to the price of the Ryzen 7000 and motherboards

Cost-manufacturing-CPU-AMD-Ryzen

Costs have increased exponentially and currently a processor like the current ones 5nm It is worth 5 times more than one of 45 nm and almost twice as much as one of 7nm. Increasing the transistors per mm2 is the way to go, but in addition to the fact that the wafer is going to be more expensive for various reasons, the design cost for AMD also rises a lot, because the elements to be treated are larger and more complex with each lithographic jump. .

In addition, the MCM architecture of the Ryzen 7000 means that with the rise in prices by TSMC, currently having 3 die is costing more per mm2 than the Intel option with a single die, curious to say the least, where the red ones also have a greater area used than their rival.

As for the price of the boards against the Ryzen 7000, what we have is an even more complex scenario. First, AMD has integrated PCIe 5.0 for GPUs and NVMe SSDs into some versions of its chipsets, which means higher costs for PCB layers and electronic design to keep signals stable and noise-free.

AMD-chipset-X670E-dual-die

As if that were not enough, there are versions with dual chipset, which implies an additional cost and an exclusive redesign for these models if the best performance is wanted, while if profitability is sought, what we will have is a single design that is being degraded to house more models.

This lowers the cost for the more expensive models, but raises it for the cheaper ones, making entry cards for that chipset more expensive. Other aspects are the components used. The electronics of AMD motherboards are one step above those of Intel due to the complex design they have, but also, even the socket is more expensive in the case of AMD than in the case of Intel.

On the first point, electronics, AMD has gone from an SVI2 to SVI3 power supply system, which gives it one more power rail, which is necessary by having increased the TDP values ​​of its processors and therefore, of the EDC and TDC for plates. The circuits that support the specification SVI3 they are few for now and also, they are expensive, which increases the price for each motherboard of the Ryzen 7000.

Increasing the TDP implies a system of phases in greater number and quality, a revised energy system, a more expensive dissipation system for VRMs and if we take into account that DDR5 is expensive to implement on a motherboard, then we have a cocktail perfect that will symbolize a rise in the final price of each motherboard.

Why doesn’t this happen so badly at Intel?

SPS-Z790-SPS-Dr.mos

Intel plays something else. Part with a lot of advantage, especially from a range bias, since it supports DDR4, its chipset is simpler and cheaper, its power supply systems are customized by themselves (IMVP9.1) is less expensive and they also have it in volume. If we add to this that the TDP remains the same after two generation jumps and that the maximum consumption has remained more or less the same, then we have greater profitability and lower design costs for manufacturers.

To make matters worse, mid-range and low-end processors can opt for simpler boards with fewer electrical and technical requirements, favoring a lower price with the same bias as AMD. Those of Lisa Su in this stratum of the market were very competitive in Zen 3, but by increasing the CPU requirements, it has pushed manufacturers to adapt, and this, added to all that has been said, has made it a less attractive platform economically speaking.

If we add to this the option of DDR4 vs. DDR5make Intel platforms much more attractive in price, with differences in this particular point that can reach 80%, because certain DDR5 are still expensive. At the cost at which the components are and given the little difference in performance compared to the price, it is undeniable that opting for DDR4 is currently the preferred option for all users and that is where AMD has clearly made a mistake with Zen 4, because otherwise we would be talking about a price of the Ryzen 7000 and its plates much more optimal and close to that of Intel.

Therefore, when it comes to budgeting for a new PC, looking at the performance, it is undeniable that Intel has an advantage here, even at low end (not to say “especially” at low end). It only remains to be seen whether the new Ryzen 7000X3D they are going to push the price of their smaller brothers down and then AMD may have more chances to be competitive against Intel, but first they must clean stock this Christmas and for this reason they have also stopped buying chips from TSMC until further notice.

Why do AMD Ryzen 7000 processors and motherboards cost so much?