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TSMC 40nm yield issues to affect AMD and Nvidia
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.
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)
Post a comment| fref on October 30, 2009 11:16 AM | Tell me about it! I ordered two of these video cards for customers almost 2 weeks ago and I'm still waiting. I hope they can still provide some while they fix their yield problem, I can't make my customers wait until december. |
| puiu on October 30, 2009 11:25 AM | this means that we might not see any price cuts anytime soon. they might even get more expensive during the winter holidays when many will buy new computers. |
| freedomthinker on October 30, 2009 11:47 AM | Mm... this are larming news , lower prices are not guaranteed , all of this is on hold , well at least TSMC noticed this , thats good at least |
| Guest on October 30, 2009 12:34 PM | I wonder, why doesn't AMD use it's GlobalFoundries for
manufacturing? 1. They have a better yield and at a lower nm process. 2. It's probably cheaper since it's kind of theirs? |
| Obakemono on October 30, 2009 12:44 PM | Are the GPU's design based off a 40nm die size and cannot be set up for the 32nm process? This is really a big blow to all involved, supply and demand will drive the prices up until the backlog gets fixed. Just like memory prices going up. |
| fref on October 30, 2009 12:45 PM | this means that we might not see any price cuts
anytime soon. Actually, I've read that prices are
being increased by 20$ because of this... So no, no price
cuts... 
|
| Rage_3K_Moiz on October 30, 2009 1:03 PM | I wonder, why doesn't AMD use it's
GlobalFoundries for manufacturing? It's cheaper to outsource the manufacturing,
since labour costs at their current fab in Germany are
likely astronomical compared to TSMC. That and the fact that
TSMC is prepped for high-volume manufacturing is probably
why GlobalFoundries isn't in the mix yet.
1. They have a better yield and at a lower nm process. 2. It's probably cheaper since it's kind of theirs? Reply With Quote |
| Cueto_99 on October 30, 2009 1:17 PM | I think in the near future it is better to stick to the 4800
series, they're cheaper, they're performance is top notch,
they're reliable, Directx 11 isn't going to be a big issue
maybe until Q2 2010, and hey? who has 3 monitors now for
eyefinity?? I just ordered 2 4830's and I already have 1, so I'll try Tri-fire... that should be enough performance at least for the next two ATi generations... |
| pioneerx01 on October 30, 2009 1:35 PM | I hope they really fix the yields and thoroughly test all the cards before they ship them out. I do not want to get a card and than have to return it doe to lack of "testing". |
| PUTALE on October 30, 2009 1:43 PM | mmh, looks like both amd and nvidia may get affected by this. |
| Rage_3K_Moiz on October 30, 2009 1:55 PM | I hope they really fix the yields and
thoroughly test all the cards before they ship them out. I
do not want to get a card and than have to return it doe to
lack of "testing". Bad cards are never due to chip
manufacturing defects, but rather due to improper
manufacturing of the card itself. Defects in the PCB (bad
soldering, broken tracks etc.) or cooling system (among
others) usually manifest as a failed card.TSMC, UMC and other fabs extensively test all their silicon before sending them out to manufacturers; after all, their reputation is at stake. A single improperly-fabricated wafer can have dire implications. It is another matter if there is a flaw in the chip design itself... |
| Deso on October 30, 2009 2:03 PM | 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 |
| MBK on October 30, 2009 2:18 PM | Awww and I was hoping there would be a nice price drop in the DX11 cards soon...guess I'll have to wait a while longer. |
| wagan8r on October 30, 2009 2:34 PM | So, if Nvidia is getting about 3% yeilds on their GT300 and TSMC is getting 40%, then does it mean Nvidia will be seeing 1.2% yeilds? I sure hope not, because I'm waiting to upgrade my GPU to a Fermi card! |
| abautu on October 30, 2009 3:01 PM | @wagan8r: Where did you see the 3% yield rates? That seems quite low, even for a new technology. |
| tonylukac on October 30, 2009 3:08 PM | @abautu: I saw mention of the 3% yield rates. I think it was mentioned somewhere in Techspot. |
| Guest on October 30, 2009 3:26 PM | Can't use GlobalFoundries because: Bulk silicon production isn't ramped yet (AMD is SOI) 40nm process isn't ready yet Exculsivity contracts with TSMC, even if GF could make them Don't expect GF to produce ATI products until 28nm |
| mailpup on October 30, 2009 3:45 PM | Besides, wouldn't GlobalFoundries be busy for awhile cranking out new CPU chips for their revamped models as described here?: http://www.techspot.com/vb/topic137182.html |
| ET3D on October 30, 2009 4:19 PM | That's a pity. I'm also looking to buy a new Radeon, and was
hoping that prices will drop a little over the next month or
two. It seems to me though like NVIDIA will suffer more from this, since its chip is larger, which means it will have more errors and lower yields. |
| wagan8r on October 30, 2009 4:41 PM | abautu said: I got it here:
[link] @wagan8r: Where did you see the 3% yield rates? That seems quite low, even for a new technology. If you follow the link on the page, you'll actually find that it was 1.7%, so I had my number slightly off. But sadly, the reality is worse, which means my calculation should have come out to 0.68%. |
| shalimar on October 30, 2009 6:02 PM | Ah well this definitely eliminates the ideas of price cuts
for the immediate future. However based on the information
available this should be cleared up soon enough there should
still be product available for the holiday season. Of
course the faster the better for AMD but I'd bet Nvidia is
hoping it gets worse since they have nothing new to release
at this time. |
| ken777 on October 31, 2009 7:45 AM | No conspiracy here, but definitely a break for Nvidia. AMD might not be able capture as might high end market share as they wanted, but it doesn't seem like Nvidia is really going to be all that happy either. I've read elsewhere that there might also be a shortage of the 55nm parts because they didn't order enough wafers. Could be a lump-of-coal-in-the-stocking type Christmas for AMD, Nvidia, and gamers. |
| JieMan on October 31, 2009 8:26 PM | Bad news indeed , it pushes everything back further , the silicone is being used for alot of current tech , from AMD and NVIDIA both desktop and mobile products supplies will be effected substantially. Directly contributing to a higher overall selling cost of said products. |
| anonemus on October 31, 2009 9:13 PM | Other than technical problems, I don't see ATI needing to cut its prices immediately as nvidia doesn't seem to be prepared as well to mass-produce 40nm graphic chips |
| tavesa on November 1, 2009 7:21 PM | These Semi conductor companies are a bit hasty. They won't test their circuits in a thorough manner and they will release the product. They are not to be blamed, because of the competition in the market, they have no other choice but to release a first version and then their developments later. That's why, It's better to purchase items from new technology, later than when they are released. The products too will be there after some time has passed. |
