Nvidia Reportedly Looking for Alternative Foundries for 28nm

By Douglas Perry
published

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.

Douglas Perry
45 Comments Comment from the forums
  • Hi Nvidia. I'll lend you my oven. Please leave three 680's as payment.
    Reply
  • fb39ca4
    Nvidia, I will lend you mah lazor. I won't even ask for anything in return.
    Reply
  • Shin-san
    I now know that Samsung has fabs. I thought every company that wasn't Intel used a third party, or a fab agreement of some sort, usually TSMC or GlobalFoundries.

    I also heard that nVidia might have contacted Intel.
    Reply
  • bak0n
    TSMC is shooting themselves in the foot trying to drive higher prices by controlling volume. Here's the proof.
    Reply
  • alverdeja
    2013?!?! Is this precedented?
    Reply
  • spasmolytic46
    I wonder if AMD still thinks selling the fab was smart?
    Reply
  • fuzzion
    Where are my quantum computers?
    Reply
  • BOOO HOOOO. We don't know how to make our products ourselves because we ship (outsource) all manufacturing jobs overseas....BOOOOOO HOOOOOO.

    If you want something done right, do it yourself, Nvidia.
    Reply
  • JAYDEEJOHN
    nVidia has also stated they want 450mm wafers, and so far Intel is the main driver behind it, with some of the IBM cartel looking into it as well.
    Problem is, the very tool makers themselves arent sure they want to make such an investment.
    As nodes get smaller, only the larger sellers ae using them from startup, and as seen in TSMCs production, their investments on 28nm may go up, but that also leaves the older processes at a loss.
    They have commitments as well, and this isnt some evil conspiracy.
    Reply
  • alidan
    wgknestrickBOOO HOOOO. We don't know how to make our products ourselves because we ship (outsource) all manufacturing jobs overseas....BOOOOOO HOOOOOO.If you want something done right, do it yourself, Nvidia.
    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.
    Reply