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Nvidia: We're Staying in the Chipset Business

By - Source: Tom's Hardware US | B 33 comments

This week there were reports that Nvidia would be dropping out of the chipset business. Nvidia responded with the following:

We've received a number of inquiries recently about NVIDIA's chipset (MCP) business. We'd like to set the record straight on current and future NVIDIA chipset activity.
 
On Intel platforms, the NVIDIA GeForce 9400M/ION brands have enjoyed significant sales, as well as critical success. Customers including Apple, Dell, HP, Lenovo, Samsung, Acer, ASUS and others are continuing to incorporate GeForce 9400M and ION products in their current designs. There are many customers that have plans to use ION or GeForce 9400M chipsets for upcoming designs, as well.
 
On AMD platforms, we continue to sell a higher quantity of chipsets than AMD itself. MCP61-based platforms continue to be extremely well positioned in the entry CPU segments where AMD CPUs are most competitive vs. Intel
 
We will continue to innovate integrated solutions for Intel’s FSB architecture. We firmly believe that this market has a long healthy life ahead. But because of Intel’s improper claims to customers and the market that we aren’t licensed to the new DMI bus and its unfair business tactics, it is effectively impossible for us to market chipsets for future CPUs. So, until we resolve this matter in court next year, we’ll postpone further chipset investments for Intel DMI CPUs.
 
Despite Intel's actions, we have innovative products that we are excited to introduce to the market in the months ahead. We know these products will bring with them some amazing breakthroughs that will surprise the industry, just as GeForce 9400M and ION have shaken up the industry this year.
 
We expect our MCP business for both Intel and AMD to be strong well into the future.

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  • 36 Hide
    jhansonxi , October 8, 2009 11:34 PM
    "But because of Intel’s improper claims to customers and the market that we aren’t licensed to the new DMI bus and its unfair business tactics, it is effectively impossible for us to market chipsets for future CPUs. So, until we resolve this matter in court next year, we’ll postpone further chipset investments for Intel DMI CPUs."

    I hate it when companies use these tactics to reduce consumer choice, just like that other company that prevented PhysX processing on its GPUs when a competitor's video card was also present.
  • 12 Hide
    Anonymous , October 9, 2009 12:27 AM
    Is it just me, or is it hard to believe that Nvidia can sell more chipsets than AMD for AMD's processors?


    I am not saying it is not possible, but it is just something that I would like to see the sales figures for.
  • 10 Hide
    joejamesatou , October 8, 2009 11:57 PM
    Please just pay the licensing for Intel DMI and quit complaining! Or release the new chipsets if you are confident you are right and let your lawyers have at Intel. They make some great chipsets and used to be my favorite back in my AMD Athlon XP days, but they just do so much whining and complaining. Whether it's dissing Intel, claiming DirectX 10.1 is useless (then releasing a 10.1 card!), banning PhsyX on an AMD card, charging motherboard makers for SLI (Crossfire = free) NVidia has a knack for this kind of behavior.

    But I do love my 9600 GSO for under $40!!!
Other Comments
  • 6 Hide
    Anonymous , October 8, 2009 11:13 PM
    hell yea
  • 0 Hide
    waikano , October 8, 2009 11:34 PM
    This makes more sense, than what was earlier reported.
  • 36 Hide
    jhansonxi , October 8, 2009 11:34 PM
    "But because of Intel’s improper claims to customers and the market that we aren’t licensed to the new DMI bus and its unfair business tactics, it is effectively impossible for us to market chipsets for future CPUs. So, until we resolve this matter in court next year, we’ll postpone further chipset investments for Intel DMI CPUs."

    I hate it when companies use these tactics to reduce consumer choice, just like that other company that prevented PhysX processing on its GPUs when a competitor's video card was also present.
  • 0 Hide
    IronRyan21 , October 8, 2009 11:39 PM
    I think Nvidia read the comments posted on todays earlier news concerning this......... then they came out wit this!
  • 10 Hide
    joejamesatou , October 8, 2009 11:57 PM
    Please just pay the licensing for Intel DMI and quit complaining! Or release the new chipsets if you are confident you are right and let your lawyers have at Intel. They make some great chipsets and used to be my favorite back in my AMD Athlon XP days, but they just do so much whining and complaining. Whether it's dissing Intel, claiming DirectX 10.1 is useless (then releasing a 10.1 card!), banning PhsyX on an AMD card, charging motherboard makers for SLI (Crossfire = free) NVidia has a knack for this kind of behavior.

    But I do love my 9600 GSO for under $40!!!
  • 12 Hide
    Anonymous , October 9, 2009 12:27 AM
    Is it just me, or is it hard to believe that Nvidia can sell more chipsets than AMD for AMD's processors?


    I am not saying it is not possible, but it is just something that I would like to see the sales figures for.
  • -3 Hide
    koss64 , October 9, 2009 12:27 AM
    Im sorry im not buying another Nvidia based board again.Right now im having a issue with my onboard network card(570sli) where 6/10 times when i load windows its completly dead, i restart and its fine and no matter what version chipset driver i load it does the same blasted thing.
  • 10 Hide
    Anonymous , October 9, 2009 12:33 AM
    The original statement by Nvidia is still the operative one for consumers, business and investors, not their latest attempt (above)to improve their image of withdrawal from the board (and also, it seems, the discrete graphic chipset) market.

    Nvidia is being very disengenuous in this "clarification". Their claim to "more chipsets than AMD" is based on corporate deliveries, where a frequent requirement is to be able to supply the same chipset under contract for a period of 3 to 5 years. These contracts are ending, Nvidia will not be designing new chipsets for the AMD platform, and even if they could they would not be cost-effective against AMD's chipsets for future orders, and over time AMD's changes in architecture (and what is in the CPU vs board chipset) will render Nvidia completely incapable of designing and producing chipsets for the AMD platform profitably. And that's what the game is, eh?

    The consumer segment of Nvidia's chipsets for AMD has already gone the way of the dodo, ever since the 780 (and then 790 and 785) chipsets were produced. Just look at the listings on NewEgg et al, and you will see hardly any NV chipset boards listed, and the number is declining daily. The Intel situation is well understood by all; Intel says Nvidia can't legally produce for the new Intel platforms, period, and Nvidia hope to delay/fuzz the situation by relying hopefully on "a lawsuit".

    Their ION volumes could be measured on the head of a pin, with an electron microscope.

    Laterally, due to their "bumpgate" disasters (documented exhaustively in a series of articles at semiaccurate.com), they have lost the confidence of a great number of their ad-in board and OEM manufacturers. Huge return rates for most/all 8000, 9000 and some 2xx chips, coupled with the duplicitious denial of Nvidia that anything was wrong, has not endeared themselves to the board/OEMs, including Sony, Dell, HP, Apple et al. Huge charge-offs on Nvidia's balance sheet, too.

    And their new humungously-sized and complex Fermi chip is still under development, is probably not intended primarily for the consumer market, isn't anywhere cost-effective compared to AMD, and *may* see the light of day in significant numbers by the end of Q1/10. May is the operative word here.

    No, Nvidia is in a pickle, and a world of hurt. No wonder their share price is tanking. No wonder they offer fuzzy "explanations" like the above.
  • -5 Hide
    roofus , October 9, 2009 1:20 AM
    eagle_eyes, is this a copy/paste from Charlie D?
  • 1 Hide
    ravewulf , October 9, 2009 1:46 AM
    My first reaction "Wait. What? But I thought... "

    So then chipsets for AMD and older Intel processors will still be developed, just not the new Intel ones? It would be nice if they came out with a newer AMD chipset. They last updated the Intel line, so AMD should be next. (I think)
  • -4 Hide
    cabose369 , October 9, 2009 3:03 AM
    alright so I am trying to get this straight here....

    So NVIDIA is going to stop making chipsets for Intel (ok) and AMD (AMD owns ATI so this will in no way affect or hurt AMD). So NVIDIA will then only be making revenue of their desktop graphics cards.... that seems stupid.

    And this is the PERFECT opportunity for AMD to screw Intel for all the times Intel screwed AMD. If NVIDIA will no longer make dedicated graphics chips for Intel the only other brand that makes graphics chips is ATI (owned by AMD). So AMD could say "screw you Intel, no dedicated ATI cards for you!" and then Intel is f***ed. LOL! (and don't even mention Nehalem cause that is gonna flop hardcore!)

    This is not going to be pretty!!
  • 1 Hide
    WheelsOfConfusion , October 9, 2009 3:32 AM
    Getting out of the integrated market seems kind of like a good idea now, since Intel is basically refusing to allow them on Core i- boards and both AMD and Intel have announced plans to move graphics cores onto the CPU die in the near future. Discrete is going to be more of nVidia's bread and butter in the future than today, but they also have an out with the Tegra line. Embedded and mobile is a place where ATI really dropped the ball and nVidia just made a big splash with the Zune HD. From the pressures on Intel's side to the opportunities of portable media players and devices, this move makes more sense than at first blush.
  • -6 Hide
    tomtom_32 , October 9, 2009 4:38 AM
    hey intel, so you thought know that you have a good cpu you can make people to buy your crappy chipsets with them didn't you? your just a bunch of b@#ches aren't you?
  • 5 Hide
    jimmysmitty , October 9, 2009 5:39 AM
    Quote:
    But because of Intel’s improper claims to customers and the market that we aren’t licensed to the new DMI bus and its unfair business tactics, it is effectively impossible for us to market chipsets for future CPUs. So, until we resolve this matter in court next year, we’ll postpone further chipset investments for Intel DMI CPUs.


    I wounder if nVidia considers not allowing SLI on any other platform chipset except their own unfair business practices....

    Or its ok for them to limit consumer choice.

    They should wounder why AMD allows for Intel chipsets to do CrossFire (even when they were ATI they did too). Could it be because they don't want to limit consumer choice and as well have a larger market to get your GPUs sold to? Because I know a ton of people who went with a nVidia chipset ONLY because of SLI. If a P35/45 or X38/48 had SLI they would have gotten it instead because the Intel chipset is just better.

    nVidia, stop calling the pot black when you are just as guilty of the same stuff.
  • 0 Hide
    jimmysmitty , October 9, 2009 5:40 AM
    tomtom_32hey intel, so you thought know that you have a good cpu you can make people to buy your crappy chipsets with them didn't you? your just a bunch of b@#ches aren't you?


    Wow. Where have you been? Intels chipsets are considered the best. They tend to give better performance, better stability and tend to overclock better than a nvidia chipset does.

    Only thing nVidias chipset has over Intels is SLI. If Intels chipsets had SLI, you better bet nVidia would be out of the chipset business pretty fast.
  • 4 Hide
    bucifer , October 9, 2009 6:21 AM
    nvidia is just harvesting the seeds of hate the planted all those years. They are getting paid back with the same coin. I really can't understand how could they be so stupid. They charged premium and royalties several years for their products; where did those money go? Really bad management.
  • 3 Hide
    Anonymous , October 9, 2009 7:17 AM
    Intel and nVidia duking it out over mobile and future chipsets and nVidia stopping production of AMD chipsets?

    AMD is laughing all the way to the bank.
  • 1 Hide
    redgarl , October 9, 2009 7:31 AM
    There is a lot of speculations about Nvidia lately... dropping from the gpu market, dropping from the chipset market... dropping from something they used to do...

    There is too much buzz around Nvidia being in a bad situation to simply not taking any attention to it. I think something is really not going really well beneath the 4 walls of Nvidia inc.
  • 1 Hide
    buwish , October 9, 2009 8:05 AM
    Unless Nvidia starts making their own CPU's, they're probably SOL in the chipset arena.
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