According to SiliconStrategies nVidia his problematic yields for the NV31 (GeForce FX 5600) and NV35 (GeForce FX 5900) high-end graphic chips are expected to be fixed by the end of August. The problem lays with the 0.13 micron procede on which these chips are produced, and this results in lower earnings for nVidia because of the higher production costs. nVidia blames these problems on TSMC (Taiwan Semiconductor Manufacturing Co. Ltd.)
"Nvidia has informed its add-in board partners that yield problems on the NV35 and NV31 will be remedied by the end of August," McConnell wrote in a report issued today.
The problems with the NV31 and NV35 do not reside at TSMC. McConnell today told Silicon Strategies that the yield issues were "Nvidia-specific."
In another boost, Nvidia also recently announced a big OEM deal with a Taiwanese motherboard giant Gigabyte Technology Inc.--a move that impacts graphics chip rival ATI Technologies Inc., according to the analyst.
Gigabyte had primarily buying its graphics chips from ATI. Now, Gigabyte will be launching six models of its flagship GA-7NNXP series motherboard, all based on Nvidia's nForce2 Ultra 400 platform processors.
Hopefully this also means pricedrops for the GeForce FX 5600 and 5900 series? But I doubt it, because this was an unexpected higher production cost for nVidia.