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TSMC 40nm yield issues to affect AMD and Nvidia

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On October 30, 2009, 10:48 AM

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest dedicated independent semiconductor foundry, recently confirmed it has run into new issues with their 40nm process technology that have sent yield rates down to 40%. Major customers for TSMC's 40nm processes include AMD, which just released its Radeon HD 5000 series, and Nvidia, who is expected to launch the GT300 series in December.

On first thought the conspiracy theorist in me found this suspiciously untimely for AMD, which for the first time in a long while had a great opportunity to capitalize on its early-to-market status. Their latest 40nm-based cards are not only the first to support DirectX 11, with Nvidia's answer arriving a few months later, but they have also been getting high marks for their performance and feature set in reviews around the web.

Then again TSMC's recent issues will reportedly impact shipping schedules for both AMD and Nvidia -- not to mention the manufacturer's financial performance. Company chairman and CEO Morris Chang pledged to get the problem fixed during the current quarter. The company had previously improved yield rates for its 40nm processes to around 60% from as low as 20-30% in the second quarter of 2009.

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User Comments: 30

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  1. This is bad news for everyone. Fewer cards, less revenue, fewer happy customers

  2. The fab as Global Foundaries is set up for producing CPUs, using technologies like high-K materials and stressed silicon.

    The fab TSMC has doesn't do any of that. No high-K material and no stressed silicon.

    But what TSMC has is this --- high volume production, dimension shrinking (40nm now and 30nm or 28nm in the near future, at the end of 2010), and TSMC package includes masks (which may cost tens of millions) as well.

  3. so thats why... I was wondering when I tried to buy the 5770 why it out out of stock everywhere :/ and I think you're right it's to convenient when amd finally was a awesome card's out at good competetive prices that suddenly 40 mm nand yeilds sink to the bottom

  4. Looks like I'm keeping my GTX260 a while longer. At least Nvidia has now more time to improve their drivers, since they will be releasing nothing new in the near future.

  5. The fab as Global Foundaries is set up for producing CPUs, using technologies like high-K materials and stressed silicon.

    The fab TSMC has doesn't do any of that. No high-K material and no stressed silicon.

    That's partly inaccurate. Strained silicon (which is what I believe you are referring to) has been produced by TSMC for at least three years now.

    TSMC is behind however on high-k gate technology; they recently pushed back high-k to their 28nm node, which will be out some time in late 2010 or early 2011.

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