TSMC Expected to Land Nvidia's and AMD's 40nm Foundry Contracts

Taipei, Oct. 14, 2008 (CENS)--Both Nvidia Corp. and AMD Inc. are expected to contract foundry giant Taiwan Semiconductor Manufacturing Co. (TSMC) to make their 40-nanometer graphics chips to stay competitive.

Industry watchers point out that although AMD will spin off its manufacturing operations into foundry operation, the planned foundry is not capable of making 40nm chips as the AMD's 300mm factory in Dresden of Germany it will take over owns only 45nm SOI process technology and a 300mm factory using 32nm process it plans to build in New York won't come on line until after 2010. AMD will debut its 40nm chip coded RV870 in the middle of next year.

Nvidia has long depended on TSMC for foundry service. The graphics-chip vendor plans to introduce its first 40nm chip codenamed GT216, which will replace its GTX280.

The two graphics-chip vendors have decided to migrate to 40nm process from 55nm, skipping the intermediate 45nm process in order to quickly pare down costs. Industry watchers point out that the two companies are engaged in price competition, inspiring the speculations that the prices will likely fall at least 20% in the coming Christmas shopping season.

Pinched profit reportedly compels the two graphics-chip vendors to complete tape-out of 40nm designs by the end of this year. They are expected to make 40nm chips available in the second half of June next year.