X-bit Labs claims Foxconn will cease production of NVIDIA GeForce graphics cards shortly, but it's unclear if the firm intends to start producing ATI Radeon graphics cards, or plans to increase its stake in Leadtek and PowerColor/Tul:
According to a market source, Foxconn has finally decided to stop making Nvidia GeForce-based graphics cards due to a plethora of reasons. The orders for ATI Radeon HD 4800-series graphics cards are rising rapidly at the moment, whereas the demand towards Nvidia’s latest offerings is declining. To make the matters worse, Nvidia from time to time undersupplies its partners with certain graphics processing units (GPUs) that are required to successfully compete against rivals. As a result, graphics cards shipments of companies like Foxconn are falling.
Foxconn owns stakes in Leadtek Research, an Nvidia-exclusive graphics cards supplier, as well as PowerColor/Tul Corp., an ATI-exclusive vendor, but the company still has a lot of manufacturing capacities, engineers as well as customers to run its own-brand graphics adapter business. Apart from Nvidia there is only one leading supplier of discrete GPUs: ATI, graphics product group of Advanced Micro Devices. There is no information whether the deal between Foxconn and ATI has been signed, but it would be logical to expect the former to start making ATI-based graphics cards instead of Nvidia-powered.
The site adds Foxconn has a tiny marketshare in the graphics card market, whatever the firm decided will not have a large impact on the marketshare of ATI or NVIDIA.