Taiwan Semiconductor Manufactu
Both Nvidia and AMD will migrate to the 40nm graphics chips to stay competitive. Nvidia and AMD are currently offering 55nm chips but they are expected to skip the intermediate 45nm process in order to quickly pare down costs.
According to the Taiwan Economic News
, both companies will contract foundry giant TSMC to make their 40-nanometer graphics chips.
Nvidia, which has been depending on TSMC for foundry service for a long time now, is expected to introduce its first 40nm chip (GT216) in the second half of 2009. The chip will will replace the company's GTX280.
On the other hand, AMD seems to have no choice but working with TSMC for the 40nm chips, at least for now. And that because the company's
plan to spin off its manufacturing operations into foundry operation will not be able to start production of 40nm chips in 2009.
AMD`s 300mm factory in Dresden of Germany owns only 45nm SOI process technology and a 300mm factory using 32nm process it plans to build in New York won`t come on line until after 2010. Working with TSMC would allow AMD to remain competitive and debut its 40nm chip coded RV870 in the middle of next year.
Nvidia has long depended on TSMC for foundry service. The graphics-chip vendor plans to introduce its first 40nm chip codenamed GT216, which will replace its GTX280.