Nvidia books IBM fab for GeForce FX

Tough on TSMC


Nvidia has signed a three-year chip-making agreement with IBM. The deal means that TSMC is no longer the graphics company's only foundry partner.

IBM will start production this summer, punching out GeForce FX parts at 0.13 micron on 300mm wafers at its East Fishkill plant. The period of the agreement will allow Nvidia to utilise IBM's 90nm process once it becomes commercially viable. IBM will start producing its first 90nm parts later this year.

Nvidia is likely to split the three-chip GeForce FX line between TSMC and IBM on a product-by-product basis.

Nvidia was keen to play down any suggestion that it was unhappy with TSMC's 0.13 micron work - held by some observers to be the reason for the delayed introduction of the GeForce FX 5800.

Indeed, today, the day after the IBM announcement, Nvidia and TSMC put out a release "reaffirming" the relationship between the two companies. Clearly someone has an eye on TSMC's share price.

"We are going to continue to engage in that [TSMC] relationship to the fullest extent possible," an Nvidia spokesman said yesterday, cited by EE Times. Nvidia may not be parting company with TSMC, but that statement isn't exactly a ringing endorsement either - the statement implies there is a limit to what TSMC can do for Nvida.

TSMC has produced around 200 million graphics chips for Nvidia during the last five years, and done rather nicely out of it. Now it will be losing revenue to IBM. It can't be happy about that. ®

Related Stories

Nvidia brings latest GeForce FX chips to notebooks
Nvidia unwraps expected GeForce FX chips


Other stories you might like

  • Cheers ransomware hits VMware ESXi systems
    Now we can say extortionware has jumped the shark

    Another ransomware strain is targeting VMware ESXi servers, which have been the focus of extortionists and other miscreants in recent months.

    ESXi, a bare-metal hypervisor used by a broad range of organizations throughout the world, has become the target of such ransomware families as LockBit, Hive, and RansomEXX. The ubiquitous use of the technology, and the size of some companies that use it has made it an efficient way for crooks to infect large numbers of virtualized systems and connected devices and equipment, according to researchers with Trend Micro.

    "ESXi is widely used in enterprise settings for server virtualization," Trend Micro noted in a write-up this week. "It is therefore a popular target for ransomware attacks … Compromising ESXi servers has been a scheme used by some notorious cybercriminal groups because it is a means to swiftly spread the ransomware to many devices."

    Continue reading
  • Twitter founder Dorsey beats hasty retweet from the board
    As shareholders sue the social network amid Elon Musk's takeover scramble

    Twitter has officially entered the post-Dorsey age: its founder and two-time CEO's board term expired Wednesday, marking the first time the social media company hasn't had him around in some capacity.

    Jack Dorsey announced his resignation as Twitter chief exec in November 2021, and passed the baton to Parag Agrawal while remaining on the board. Now that board term has ended, and Dorsey has stepped down as expected. Agrawal has taken Dorsey's board seat; Salesforce co-CEO Bret Taylor has assumed the role of Twitter's board chair. 

    In his resignation announcement, Dorsey – who co-founded and is CEO of Block (formerly Square) – said having founders leading the companies they created can be severely limiting for an organization and can serve as a single point of failure. "I believe it's critical a company can stand on its own, free of its founder's influence or direction," Dorsey said. He didn't respond to a request for further comment today. 

    Continue reading
  • Snowflake stock drops as some top customers cut usage
    You might say its valuation is melting away

    IPO darling Snowflake's share price took a beating in an already bearish market for tech stocks after filing weaker than expected financial guidance amid a slowdown in orders from some of its largest customers.

    For its first quarter of fiscal 2023, ended April 30, Snowflake's revenue grew 85 percent year-on-year to $422.4 million. The company made an operating loss of $188.8 million, albeit down from $205.6 million a year ago.

    Although surpassing revenue expectations, the cloud-based data warehousing business saw its valuation tumble 16 percent in extended trading on Wednesday. Its stock price dived from $133 apiece to $117 in after-hours trading, and today is cruising back at $127. That stumble arrived amid a general tech stock sell-off some observers said was overdue.

    Continue reading

Biting the hand that feeds IT © 1998–2022