What is the cost of developing the GPU of a graphics card?

Surely you have ever wondered how much it costs to develop a graphics card, more specifically, the GPU. Well, a Chinese company has revealed the cost of developing the heart of a graphics card . As you well know, China has been working for years to develop its own processors and graphics cards.

We must bear in mind that this data is difficult to extrapolate to companies such as AMD, NVIDIA and Intel . These three companies work with more advanced nodes and their graphics have support for different technologies. Including support for ray tracing or dynamic rescaling means increasing the difficulty of development and, therefore, the costs.

What is the cost of developing the GPU of a graphics card

This is how much it costs to design the GPU of a graphics card

China wants to stop relying , increasingly urgently, on external hardware . The idea is to abandon hardware that has been designed and manufactured outside its borders. This means stopping using hardware from Intel, AMD, and NVIDIA, among other companies. To do this, I start an ambitious process of developing our own solutions, which not only include hardware, but also software.

Currently, Chinese companies Biren, Mu Xi, Denglin, Tianshu Zhixin, Loongson, Innovo and Jingjawi already manufacture their own GPUs . Some already have GPU prototypes made in the 7nm process, which is impressive. We must take into account that in a decade (more or less) they have advanced like a beast.

Within the graphical solutions that are being developed, we can make two distinctions of solutions according to their use. We have, on the one hand, the GPGPUs , which are GPUs designed for computing acceleration , come on, AI, supercomputing, etc. Then we have the “normal” GPUs , which are focused on gaming and 3D rendering . The latter have the mission of competing with solutions from AMD, NVIDIA and Intel.

The research and development process is quite high, since it takes a lot of time and qualified personnel. Sun Erjun, who is co-founder and CMO of Mu Xi, has revealed some cost data in an interview.

According to Erjun, the design of a GPU costs between 1,500 and 2,000 million yuan, which in exchange is between 210-280 million euros . Furthermore, Erjun says that the market can only support two or three such companies. This means that by 2025 some will be absorbed or simply disappear.

But how much does it cost AMD, NVIDIA and Intel to develop their GPUs?

Unfortunately, this is data that we do not have and that is really difficult to give. Carrying out an extrapolation is not at all feasible , since there are many factors that prevent it. To begin with, these Chinese companies are largely government-supported. Taxes are lower than in the United States and labor is also cheaper.

For example, although we have no data, Intel has contracted Raja Koduri for the development of its graphics cards. Although not officially revealed, Koduri has allegedly been given an unlimited budget. So much so, that Intel opened an R&D center in India, Koduri’s country of origin.

We must bear in mind that the AMD, NVIDIA and Intel development teams are constantly training. Trips to foundries (TSMC and Samsung) to learn about new manufacturing processes and nodes are common. In addition, it is not just designing the GPU, it is designing the PCB, component testing, frequency and voltage adjustments, heatsink design, etc.