A shortage of flip-chip substrates in Taiwan may slow the shipment of graphics processors designed by ATI Technologies and Nvidia, according to sources in Taiwan.

ATI has had difficulty delivering the RV410 and R430 graphics processors to graphics-card makers since it has had problems with its major chip-packaging partner, Advanced Semiconductor Engineering (ASE), according to sources at graphics-card makers. Nvidia has also faced the same problem with its NV43 products, the sources stated.

ASE said that due to a water shortage in Taoyuan county in late August and early September, it was not able to produce enough flip-chip substrates at its subsidiary, ASE Chung-Li, to package chips.

To address the problem, ASE has tried to source substrates from other local suppliers, such as Nanya PCB and Phoenix Precision Technology (PPT). However, these suppliers did not have spare inventory immediately available, according to a source at ASE.

“There were some delays due to the water shortage, but recently everything has started to return to normal,” commented Joseph Tung, CFO at ASE.

Tung did not elaborate on the incident’s effect on ASE customers.

ATI’s RV410 processors, officially known as the X700 series, were introduced on September 21 and target the mid-range graphics-card segment. The company has not yet announced the R430 processors, which are believed to be targeting the high-end segment. Nvidia introduced the NV43 chips on August 12.


Source : DigiTimes