Wednesday, March 26, 2003
IBM has confirmed an alliance with Nvidia to produce its next-generation GeForce graphics processor chip.
Under the terms, IBM will make Nvidia's next-generation GeForce graphics processor line, based on its 0.13-micron technology.
IBM will produce the chips within its new 300-mm fab in East Fishkill, starting in the summer of 2003.
The announcement represents a major change in strategy for Nvidia. For years, Nvidia has relied on one foundry for its IC production--Taiwan Semiconductor Manufacturing Co. Ltd
A spokesman for Nvidia said the company is moving towards a dual-foundry strategy to minimize risk. Nvidia will continue to use TSMC's foundry services, but now, it will also utilize IBM's fabs as well. “We will use them both,” the spokesman said.
The deal follows reports that Nvidia was unhappy with TSMC over poor yields with its 0.13-micron chips. Until recently, TSMC was struggling to ramp up its 0.13-micron process technology--which impacted Broadcom, Nvidia, Qualcomm, Via, and other customers, according to analysts.
By: Docmemory
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