The shortage of 28 nm production capacity is leading fabless chip companies to look for new sources to support their business.
A new report claims that both Nvidia and Qualcomm have approached other companies to produce their chips.
Nvidia, which previously relied on TSMC as a foundry, apparently has contracted Samsung to manufacture 28 nm GPUs while Qualcomm seems to have chosen United Microelectronics (UMC) and Globalfoundries as chip manufacturer, according to Digitimes.
Even if TSMC confirmed that it is ramping its 28 nm process, it is unlikely that the company will be able to match demand until the first quarter of 2013. Sources told Digitimes that 28 nm orders at TSMC jumped 5x between Q4 2011 and Q1 2012. TSMC announced that it is considering an increased investment in its production process to help ease the current supply-and-demand imbalance. Details about this plan are expect to be provided at an investors meeting on April 26.
a fab is a multibillion $ investment, you would probably end up in the red about 5-10billion before you churn out one chip.
for most companies who don't make obscene amounts of money, a 3rd party fab is the better option, because that IS there business, building and running the fab, where for you it would be a major part, but not the sole purpose of your business.
a fab is a multibillion $ investment, you would probably end up in the red about 5-10billion before you churn out one chip.
for most companies who don't make obscene amounts of money, a 3rd party fab is the better option, because that IS there business, building and running the fab, where for you it would be a major part, but not the sole purpose of your business.