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Nvidia's GPU Material Defect Cost $475.9 Million

By - Source: Tom's Hardware US | B 48 comments

Nvidia has weathered the storm.

Nvidia weak die/packaging material gaffe was one of the worst and most damaging for the GPU company. Certain versions of previous generation MCP and GPU (G84, G86) products shipped before July 2008, especially in notebooks, would fail due to the bad material, which led to a ripple effect of in and out of warranty claims.

Years later, the charges against Nvidia are still taking their toll. In the most recent quarter, Nvidia reported a charge of $193.9 million which includes additional remediation costs over the GPU error.

With this $193.9 million on top of the $282 million of net charges from previous statements, the total net charge over the GPU material flaw totals $475.9 million.

Nvidia may have reason to be optimistic, however, as it believes that it may be finally done paying for its mistake. Nvidia CEO Jen-Hsun Huang believes that the $193.9 million could be the enough to put the problem behind the company.

"It's our best estimate," he said, talking to Cnet. "With much, much more understanding and more data than we had two years ago or a year ago. And we've had the opportunity to work with every single PC (maker) out there. So we think it's near the end."

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  • 24 Hide
    pbrigido , August 17, 2010 1:11 PM
    Let's hope they learn from their mistakes and move on.
  • 14 Hide
    jojesa , August 17, 2010 1:17 PM
    I don't know what are they doing with the money, since laptop companies (Dell) are still lying to their costumers when system die because of a bad GPU.
  • 13 Hide
    mavroxur , August 17, 2010 1:17 PM
    pbrigidoLet's hope they learn from their mistakes and move on.



    Agreed. After paying that kind of money, I hope it doesn't happen again.
Other Comments
  • 24 Hide
    pbrigido , August 17, 2010 1:11 PM
    Let's hope they learn from their mistakes and move on.
  • 3 Hide
    zampolit , August 17, 2010 1:15 PM
    My Asus Laptop G2S had to be returned because my 8600M's solder became lose. I noticed at strange times, or strange angles of the screen it would get a green, red, or blue hue...and sometimes have red square artifacts all over the screen.

    But, Asus took the laptop back not problem and gave me a M71V replacement. :) 
  • 13 Hide
    mavroxur , August 17, 2010 1:17 PM
    pbrigidoLet's hope they learn from their mistakes and move on.



    Agreed. After paying that kind of money, I hope it doesn't happen again.
  • 14 Hide
    jojesa , August 17, 2010 1:17 PM
    I don't know what are they doing with the money, since laptop companies (Dell) are still lying to their costumers when system die because of a bad GPU.
  • 0 Hide
    apache_lives , August 17, 2010 1:28 PM
    the 7 series chips suffered the same issue and even chipsets suffer the same issues and they were never listed anywhere - desktops with nvidia chipset based boards even suffer the same issues (i know this because i can reflow chips, and that solves the same issues with products other then the 8400/8600)

    hell my old 6600GT AGP had the same issue and reflowing brought it back to life, along with an old 8800GT

    atleast with ATi cards i know theres no point reflowing because it never fixes there cards - kinda guess its from other faults when there cards fail.

    Good one nvidia

    Also kinda wonder how long these new GTX480 cards will last - had a tri-sli rig at my shop doing 110ºc under load which managed to raise the room temps 4ºc atleast within an hour (room temp is always 22 thanks to aircon - hate to see how they run in summer here in Australia when outside its 35º+) - already cooked a card from a burn in test.
  • 10 Hide
    Reynod , August 17, 2010 1:32 PM
    The underfill problem was first raised, and well documented by Charlie Demerjian.

  • 2 Hide
    bourgeoisdude , August 17, 2010 1:41 PM
    jojesaI don't know what are they doing with the money, since laptop companies (Dell) are still lying to their costumers when system die because of a bad GPU.


    Still lying to their customers? Please don't make blanket statements like that without examples. Also, not every video issue is caused by the GPU. I found out that the NVIDIA chipset in my associate's Dell Precision laptop was not to blame for the video problems. Dell replaced that first because they figured the recall may have affected that model (they didn't consult their L2 tech first) only to find out the issue was a bad cable connecting the LCD to the chipset.

    When I worked for Dell a few years back, I remember a couple of times that the previous tech replaced the customer's Maxtor hard drive for their GX270's because "that was the problem all the other GX270's had" , only to find out that didn't fix the issue. Under the warranty contract most companies have with Dell (as well as consumer contracts), it's still important to do basic troubleshooting even for a recall or "known" issue, or at least verify the symptoms match the problem.
  • 2 Hide
    Anonymous , August 17, 2010 1:44 PM
    I don't think these things will let up until warranties expire. I guess Nvidia is figuring that will be soon. How sad that a more widespread recall was not done on this problem.
  • 1 Hide
    nforce4max , August 17, 2010 1:47 PM
    GeFail is the best way to describe it while Grillforce does the job for most. A stocked clocked GTX480 wouldn't last long in my climate and this summer has been the hottest in a long time thanks to extra solar activity. 30-35c is common while in the city near paved areas its hot enough to fry eggs. You know its bad when one walks out of a aircon building and can feel the heat through my boots right away. The worst heat index value that we have had thus far this summer was a scorching 47c and that was only three weeks ago! Todays forecast is 39c :s
  • 4 Hide
    arfrxz , August 17, 2010 1:53 PM
    I'm one of the victim. RIP G84 GPU.
  • 5 Hide
    dark_lord69 , August 17, 2010 1:56 PM
    The whole company is not doing too well if you ask me. It's sad because in the days of Voodoo and 3DFX I owned I owned a TNT then the "GeForce 256" and it only got better from there. But somewhere along the line the train derailed they hired some greedy a-hole that said we can charge insane prices and people will still buy our video cards. Sorry nVidia I jumped ship after my GeForce 6600 GT the ATi cards I was looking at were cheaper and had better performance. For the most part this statement is still true today. nVidia you need to fix your pricing and you need to bring the power requirements and heat levels down if you want to stay in the game.
  • 1 Hide
    tu_illegalamigo , August 17, 2010 2:14 PM
    I`ve always been a pretty solid ATI customer, since about the old 9 series. Hopefully Nvidia will make some profit this quarter and keep competition with ATI high. Glad I was not a victim, I feel for the people that got screwed.
  • 5 Hide
    Acert93 , August 17, 2010 2:14 PM
    jojesaI don't know what are they doing with the money, since laptop companies (Dell) are still lying to their costumers when system die because of a bad GPU.

    Yeah, they didn't learn. They, and their vendors, did a tip toe dance around the issue. They did a measly 12 month extension on warranties and replaced units with the SAME defective chips. I know, my barely 2 year old Dell is has been DEAD for months and Dell/NV smile and say, "Out of warranty" even though Dell admits it is the GPU issue.
  • 0 Hide
    DjEaZy , August 17, 2010 2:17 PM
    ... o how many dv6000 and dv9000 series failed becouse of GF8200M and GF8400M chips...
  • 0 Hide
    lamorpa , August 17, 2010 2:25 PM
    pbrigidoLet's hope they learn from their mistakes and move on.

    A rolling stone gather no moss.
    Never put off till tomorrow what you can do today.
    Easy does it.
    First things first.
    One day at time.
    This too shall pass.
    ...
  • -1 Hide
    hardware specialists , August 17, 2010 2:35 PM
    thats what you get for buying nvidea garbage in the first place.
  • 0 Hide
    maxpayne94 , August 17, 2010 2:41 PM
    Nvidia should learn from their mistakes. I mean laptop owners suing them for faulty chips.Too bad, its hard for nvidia. I recently buyed ATi card because Nvidia card wasnt giving the performance that it used to give.
  • -4 Hide
    rd350 , August 17, 2010 2:59 PM
    woah steep price for perfection
  • 3 Hide
    sliem , August 17, 2010 3:09 PM
    rd350woah steep price for perfection


    Perfection?
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