If you can recall, the biggest problem NVIDIA had with GeForceFX core production was the poor transition they went through when going from 0.15 to a 0.13 micron process.
Many months later, we have a small quantity of high-end GeForceFX products being shipped out and sold compared to ATI Radeons that still make good use of the mature 0.15-micron process.
According to this story at The Reg, NVIDIA has finally solved the problem behind the low yields which were entirely of its own making and blame should not be laid at the door of its main foundry partner, TSMC.
Is it too late for NVIDIA? Perhaps it is for their current line of GPUs, however as we approach the holiday season, they will most likely revamp the complete line of FXs, production problems aside. I can bet they were holding on for this moment.