AMD, NVidia are ‘undershipping’ chips to keep CPU, GPU prices elevated

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AMD’s client PC sales also dropped dramatically—a whopping 51 percent year-over-year—but the company managed to eke out a small profit despite the sky falling. So why aren’t CPU and GPU prices falling too? In a call with investors Tuesday night, CEO Lisa Su confirmed that AMD has been “undershipping” chips for a while now to balance supply and demand (read: keep prices up).

“We have been undershipping the sell-through or consumption for the last two quarters,” Su said, as spotted by PC Gamer. “We undershipped in Q3, we undershipped in Q4. We will undership, to a lesser extent, in Q1.”

With the pandemic winding down and inflation ramping up, far fewer people are buying CPUs, GPUs, and PCs. It’s a hard, sudden reverse from just months ago, when companies like Nvidia and AMD were churning out graphic cards as quickly as possible to keep up with booming demand from cryptocurrency miners and PC gamers alike. Now that GPU mining is dead, shelves are brimming with unsold chips.

Despite the painfully high price tags of new next-gen GPUs, last-gen GeForce RTX 30-series and Radeon RX 6000-series graphics cards are still selling for very high prices considering their two-year-old status. Strategic under-shipping helps companies maintain higher prices for their wares.

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AMD isn’t the only one doing it, either.

“We’re continuing to watch each and every day in terms of the sell-through that we’re seeing,” Nvidia CFO Colette Kress said to investors in November. “So we have been undershipping. We have been undershipping gaming at this time so that we can correct that inventory that is out in the channel.”

Since then, Nvidia has released the $1,200 GeForce RTX 4080 and $800 RTX 4070 Ti, two wildly overpriced graphics cards, and tried positioning them as enthusiast-grade upsells over the RTX 30-series, rather than treating them like the usual cyclical upgrades. AMD’s $900 Radeon RX 7900 XT offers similarly disappointing value and the company recently released a blog post also positioning its new GPUs as enthusiast-grade upsells.

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We expect—hope?—that as stocks dwindle down and competition ramps up, sanity will return to graphics card prices, mirroring AMD and Intel’s recent CPU price adjustments. Just this morning, Intel announced that its Arc A750 graphics card was getting a price cut to $250, instantly making it an all-too-rare tempting target for PC gamers on a budget.

Source: AMD is ‘undershipping’ chips to keep CPU, GPU prices elevated | PCWorld

A Drug Company Made $114 Billion Gaming America’s Patent System by adding tiny bits to the original patent

The New York Times looks at the AbbVie’s anti-inflammatory drug Humira and their “savvy but legal exploitation of the U.S. patent system.” Though AbbVie’s patent was supposed to expire in 2016, since then it’s maintained a monopoly that generated $114 billion in revenue by using “a formidable wall of intellectual property protection and suing would-be competitors before settling with them to delay their product launches until this year.” AbbVie did not invent these patent-prolonging strategies; companies like Bristol Myers Squibb and AstraZeneca have deployed similar tactics to maximize profits on drugs for the treatment of cancer, anxiety and heartburn. But AbbVie’s success with Humira stands out even in an industry adept at manipulating the U.S. intellectual-property regime…. AbbVie and its affiliates have applied for 311 patents, of which 165 have been granted, related to Humira, according to the Initiative for Medicines, Access and Knowledge, which tracks drug patents. A vast majority were filed after Humira was on the market.

Some of Humira’s patents covered innovations that benefited patients, like a formulation of the drug that reduced the pain from injections. But many of them simply elaborated on previous patents. For example, an early Humira patent, which expired in 2016, claimed that the drug could treat a condition known as ankylosing spondylitis, a type of arthritis that causes inflammation in the joints, among other diseases. In 2014, AbbVie applied for another patent for a method of treating ankylosing spondylitis with a specific dosing of 40 milligrams of Humira. The application was approved, adding 11 years of patent protection beyond 2016.

AbbVie has been aggressive about suing rivals that have tried to introduce biosimilar versions of Humira. In 2016, with Amgen’s copycat product on the verge of winning regulatory approval, AbbVie sued Amgen, alleging that it was violating 10 of its patents. Amgen argued that most of AbbVie’s patents were invalid, but the two sides reached a settlement in which Amgen agreed not to begin selling its drug until 2023.

Over the next five years, AbbVie reached similar settlements with nine other manufacturers seeking to launch their own versions of Humira. All of them agreed to delay their market entry until 2023.
A drug pricing expert at Washington University in St. Louis tells the New York Times that AbbVie and its strategy with Humira “showed other companies what it was possible to do.”

But the article concludes that last year such tactics “became a rallying cry” for U.S. lawmakers “as they successfully pushed for Medicare to have greater control over the price of widely used drugs that, like Humira, have been on the market for many years but still lack competition.”

Source: A Drug Company Made $114 Billion Gaming America’s Patent System – Slashdot

Beijing grants XPeng X2 ‘flying car’ a flight permit

HT Aero, a subsidiary of Chinese automaker XPeng, says the Civil Aviation Administration of China (CAAC) has granted it a flight permit for its two-seater electric “flying car,” the XPeng X2.

The aircraft is the first manned electric vertical take-off and landing (eVTOL) vehicle to obtain the permit and HT Aero’s fifth-generation eVTOL.

Calling the vehicle a “car” seems like a bit of a stretch given that it has no wheels. The 4.97 x 4.78 x 1.36m (16.3 x 15.7 ft x 4.5 foot) carbon fiber body resembles a drone or quadcopter with retractable arms that reduce the width to 1.95m (6.4 ft).

On the corner of each arm sit two stacked rotors. The eight total rotors have a diameter of 1.83m (6ft) each and carry 560kg (1,235lb) – maximum 760kg (1675lb) – at expected cruising speeds of around 130kph (80mph).

XPENG_X2_

The XPeng X2

The vehicle flies for up to 35 minutes at a max altitude of 1,000m (3,280ft) and is equipped with both manual and automatic flight modes. According to XPeng exec Jiaxi You, the vehicle “can be driven on normal roads and flown safely at low altitude.”

The X2 completed its first successful flight in June 2021 and since then has flown over 3,000 test flights.

“After obtaining the chartered flight certificate, we will continue to carry out a series of manned driving tests to accumulate data and experience in research and development, flight tests, and more in preparation for mass production,” said HT Aero in Mandarin.

While the X2 doesn’t exactly look much like a flying car, HT Aero’s sixth generation is essentially a sedan with wings. The company plans to use the X2 certification to support the development of the X3, which should be available in 2024.

“HT Aero’s sixth-generation road-capable flying car will build on the company’s years of experience in developing eVTOLs, delivering an innovative vehicle for both land and air travel,” said HT Aero, which claimed that the vehicle will not only “transition seamlessly from road to air” but also be “fully equipped with autonomous assistant pilot functions using XPeng’s signature intelligent OS.

Source: Beijing grants XPeng ‘flying car’ a flight permit • The Register

Space Sail Experiment Pushes Satellite to Deorbit and burn up, cleans space junk

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The Drag Augmentation Deorbiting System (ADEO) braking sail was developed by High Performance Space Structure Systems as a way to deorbit satellites at the end of their mission. In a space-based test in December 2022 called “Show Me Your Wings,” ADEO was deployed from an ION Satellite Carrier built by private space company D-Orbit. ADEO successfully pushed the satellite carrier out of its orbit, sending it into the atmosphere to burn up.

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“We want to establish a zero debris policy, which means if you bring a spacecraft into orbit you have to remove it,” said ESA Director General Josef Aschbacher in a press release.

ADEO – Deorbit Sailing on Angel Wings

ADEO is a 38-square-foot (3.5-square-meter) sail made up of an aluminum-coated polyamide membrane secured to four carbon-fibre reinforced arms that are positioned in an X-shape. The sail increases surface drag when deployed from a satellite, leading to a more rapidly decaying orbit. ADEO can also be scaled up or down depending on the size of the satellite it’s attached to. The largest version could reach 1,076-square-feet (100-square-meter) with the smallest sail being 37-square-foot (3.5-square-meter).

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Source: Space Sail Experiment Expedites Disposal of Satellite