This other User at AMD with a 7900XTX had a similar issue with games also reaching 110c. The fix was his computer case had poor air circulation in it: https://community.amd.com/t5/graphics/7900-xtx-reference-bought-from-amd-com-junction-always-110c/m-...
You can check this out by temporarily removing your PC side panel and see if your GPU card runs slight cooler with it off. If it does that is a good indication you have air circulation issues inside your PC.
If it doesn't then it is a issue with your GPU card. You can open a AMD SUPPORT- WARRANTY Ticket to see if they believe you need to RMA your GPU card under warranty to be checked or repaired or replaced from here: https://www.amd.com/en/support/contact-email-form
NOTE: Open a ticket after checking the air circulation inside your PC first.
Also don't try to replace the thermal paste because that will probably void your AMD Warranty on the GPU card.
Sorry for this very long reply. But a lot of information concerning your GPU's Temperatures from various sources that I posted for your to look over.
Does sound like something is not working correctly on the GPU cooling system. Possibly the Thermal Paste from the factory is not working the way it should or the Heatsink is not making a solid contact with the GPU chip. Just guessing though.
I am not familiar with the 7000 series GPU cards but with the 6000 series GPU cards most Hot Spot temps stays below 90c during heavy loads or gaming.
See if your GPU card overheats while being stressed. Try using OCCT to stress test your GPU and PSU. You can use that information for AMD if you should try to RMA the GPU card.
With your room around 70F and the side panel off and with a aggressive fan curve and it still reaches 110c and even needs to throttle to keep at 110c does not sound normal.
But personally I don't believe AMD will replace your GPU card if the Hot Spot temperature stays at or below 110c. Since the GPU card was engineered to run at those hot temperatures and considered to be normal.
From reviews the RX7900XTX is a very high wattage GPU card. Something around 355 watts of power.
Found this 3DGURU reviews that does mention temperatures and the RX7900XTX temps seems to be similar to the 6900XT temps: https://www.guru3d.com/articles-pages/amd-radeon-rx-7900-xtx-review,7.html:
Graphics card temperatures
So here we'll have a look at GPU temperatures. First up will be IDLE (desktop) temperatures as reported through the software on the thermal sensors of the GPU. Overall anything below 50 Degrees C is considered okay, anything below 40 Degrees C is admirable. We add some other cards at random that we have recently tested in the chart. But what happens when we are gaming? We fire off an intense game-like application at the graphics card and measure the highest temperature of the GPU.
So with the card fully stressed, we kept monitoring temperatures and noted down the GPU temperature as reported by the thermal sensor. These tests have been performed at 20~21 Degrees C room temperature, this is a peak temperature based on a GPU stress loop.
Tom's Hardware is showing similar temps under game conditions. Temps below 80c: https://www.tomshardware.com/reviews/amd-radeon-rx-7900-xtx-and-xt-review-shooting-for-the-top/8
AMD bumped up the TBP on the 7900 XT to 315W instead of the original 300W, and in FurMark we actually just barely exceeded that mark — and the same goes for the RX 7900 XTX, which hit 366W. Our Metro Exodus power tests both end up around 5W lower than the rated TBP, but it's worth noting that in other gaming tests, particularly at 1080p, power use can be quite a bit lower (see below).
Clock speeds on both cards landed above the 2.5 GHz mark while gaming, though as you'd expect, the clocks were quite a bit lower in FurMark. In fact, in FurMark it looks like AMD's new cards throttle more than just about any other GPU we've tested recently. That's not a huge issue, as FurMark represents an atypical "worst-case" workload — though that could change in the future.
GPU temperatures remained below 70C in all of our testing, with fan speeds south of 2,000 RPM. The fan speed and temperature results also line up with what we experienced in regular use, as the XTX card has a larger and more potent cooling subsystem and often runs noticeably quieter than the XT model.
Of course these tests are done under controlled laboratory conditions but does give you a general idea of Temperatures under loads for the RX7900XTX.
So it seems like the 7000 series temperatures are similar to the 6000 series temperatures.
EDIT: AMD Recommends a minimum PSU of 800 Wats for a PC with a RX7900XTX GPU card installed. Asus for their RX7900XTX GPU card recommends a PSU between 800 watts and 1200 watts.
This tech site mentioned a couple of good points: https://www.geeksstate.com/can-psu-cause-gpu-to-overheat/#Can_PSU_cause_a_GPU_to_overheat
Can PSU cause a GPU to overheat?
The heat generated from the PSU can only affect the GPU if the PSU is too hot and the two parts are very close to each other, another reason would be if the PSU is cheap and malfunctioning, the PSU could then provide the GPU with more power than needed or less power than required causing the GPU to overheat and eventually fail.
1- Is your GPU in a position where your CPU Cooler is exhausting its hot air directly at the GPU heatsink? That would make your GPU card run much hotter than normal.
2- Is your GPU very close to any hardware that might produce a lot of heat like your PSU or CPU as mentioned above?
3- During OCCT PSU Test keep an close eye on PSU Outputs during the tests (3.3/5.0/12.0 VDC). Each output should be within 5% of its rated output. Anything more than 5% and your PSU is not delivering accurate voltages or is under powered.
