Following AMD's recent comments on the improved availability of Radeon HD 5000 series graphics cards, TSMC's Senior VP of Operations, Mark Liu, today confirmed that yield rates on their 40nm manufacturing process are finally about the same level as the mature 65nm process. The executive didn't go too deep into details but said the chamber matching problems that had hampered supply for the last quarter have now been fixed.

Indeed the yield rate increase was reflected by the sudden widespread availability of AMD's 40nm cards around the turn of the year. The timing also works quite well for Nvidia as it prepares the release of its first billion transistor 40nm GPU towards the end of this quarter, the Fermi-based GF100.

In addition to the good news above, TSMC announced it has opened a new factory building named Phase 5, which is part of the company's Fab 12 located at the Hsinchu Science Park in Taiwan. Once Phase 5 is operational it will be used for volume production of 28nm products in the third quarter of 2010.