Nvidia to split orders 20/80 between IBM and TSMC

Dom · May 30, 2003, 07:21 PM

As Nvidia sees more opportunities in the multimedia sector, its key foundry partner Taiwan Semiconductor Manufacturing Company (TSMC) may benefit from more outsourced orders, according to a report by Alex Gauna, US semiconductor analyst at UBS Warburg.

The introduction of Sony's PSX, a follow-up to the hugely popular PlayStation 2 (PS2), will likely lead to increased orders for graphics chips from Nvidia, the report said.

IBM, which is scheduled to deliver within the next two months its first tranche of Nvidia orders, estimated at about 3,000 wafers, is unlikely to steal much business away from TSMC, he predicts.

While Nvidia has engaged IBM for foundry outsourcing, we think IBM still needs to prove itself in commercial volume production at the advanced technology node, Gauna wrote. Under our worst-case scenario, we estimate the order to be split between IBM and TSMC to be 20/80 on a longer-term basis.

Meanwhile, Nvidia, which derives approximately 15-20% of its revenues from Xbox generated solutions, is well positioned to capitalize on the emerging multimedia opportunities, thanks to its heavy investment in next-generation foundry device production, the report said.

Nonetheless, Nvidia will leverage IBM to negotiate price with TSMC, given the chip designers cost-cutting focus, the report said. In technology, Nvidia currently has no plans to design in 90nm as it remains far from volume ramp and it still remains focused on 130nm, it said.

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Source: DigiTimes

amuro · May 31, 2003, 12:49 AM

Quote:

The introduction of Sony’s PSX, a follow-up to the hugely popular PlayStation 2 (PS2), will likely lead to increased orders for graphics chips from Nvidia, the report said.

Can you clarify what this means, I know that Nvidia chips are used in XBox but... Sony is not going to be using Nvidia chips right?

Quote:

Nonetheless, Nvidia will leverage IBM to negotiate price with TSMC, given the chip designer’s cost-cutting focus, the report said. In technology, Nvidia currently has no plans to design in 90nm as it remains far from volume ramp and it still remains focused on 130nm, it said.

Good, because right now there are too many heat problems with 130nm its no wonder ATI chose to stay with 150nm, yet test 130nm with the 9600Pro.

Hopefully this will mean that when Nv40 comes out it will definetly be aged properly and will take advantage to become a better GPU than Nv3x was and hopefully give ATI a challenge so that price wars will happen more often.

May 30, 2003, 07:21 PM	#1
Dom DriverHeaven Extreme Member Join Date: Jun 2002 Posts: 12,940 Rep Power: 0	Nvidia to split orders 20/80 between IBM and TSMC As Nvidia sees more opportunities in the multimedia sector, its key foundry partner Taiwan Semiconductor Manufacturing Company (TSMC) may benefit from more outsourced orders, according to a report by Alex Gauna, US semiconductor analyst at UBS Warburg. The introduction of Sony's PSX, a follow-up to the hugely popular PlayStation 2 (PS2), will likely lead to increased orders for graphics chips from Nvidia, the report said. IBM, which is scheduled to deliver within the next two months its first tranche of Nvidia orders, estimated at about 3,000 wafers, is unlikely to steal much business away from TSMC, he predicts. While Nvidia has engaged IBM for foundry outsourcing, we think IBM still needs to prove itself in commercial volume production at the advanced technology node, Gauna wrote. Under our worst-case scenario, we estimate the order to be split between IBM and TSMC to be 20/80 on a longer-term basis. Meanwhile, Nvidia, which derives approximately 15-20% of its revenues from Xbox generated solutions, is well positioned to capitalize on the emerging multimedia opportunities, thanks to its heavy investment in next-generation foundry device production, the report said. Nonetheless, Nvidia will leverage IBM to negotiate price with TSMC, given the chip designers cost-cutting focus, the report said. In technology, Nvidia currently has no plans to design in 90nm as it remains far from volume ramp and it still remains focused on 130nm, it said. ______________ Source: DigiTimes