TSMC 40nm yield issues resurface

[Heinz68]

Bad news for both graphic card vendors. Even more bad news for the AMD/ATI since their product is ready, they need good supply to increase the market share and make some more money, they sure need that.

Also bad news for the consumer, bad yields mean higher production cost.

TSMC 40nm yield issues resurface, CEO promises fix by year-end
DIGITIMES (http://www.digitimes.com/news/a20091030PD209.html) [Friday 30 October 2009]

Taiwan Semiconductor Manufacturing Company (TSMC) has revealed it recently run into issues with its 40nm process technology impacting yields. Company chairman and CEO Morris Chang pledged the issue will be solved within the quarter.

TSMC said it has seen yield rates for its 40nm node drop to 40% due chamber matching issues. Main customers for TSMC's 40nm processes are GPU vendors AMD, which recently launched its new 40nm-based Radeon 5870 series, and Nvidia, who is scheduled to launch its 40nm-based GT300 series of chips in December, according to previous reports. TSMC's recent issues may impact the shipping schedules of the GPU vendors, market watchers commented.

During TSMC's July 2009 investors conference, Chang revealed that yield rates for 40nm processes had improved to 60%, up from as low as 20-30% in the second quarter of 2009.

In other news, TSMC has released its October 2009 investors report in which company CFO Lora Ho said, "Due to stronger demand for 40nm and 65nm technologies, TSMC 2009 capex has risen further and is expected to be around US$2.7 billion." Accordingly, TSMC's fourth-quarter capex may total around US$1.34 billion, up from US$971 million alloted in the third quarter and US$224 million in the second quarter.

TSMC revealed that 45/40nm accounted for 4% of the company's third-quarter revenues, compared to 1% in the first and second quarters. TSMC said it aims to push up the sales proportion to 10% by the end of 2009

[Revs]

Damn you, chamber matching issues, DAMN YOU!!! :mad:

Does this mean I've got more time to save up for my next upgrade?

[uibo]

After reading the title I thought to myself: "So TSMC started to produce Fermi chips." Seriously though - with NVIDIAs and ATIs new chips being much larger that the old 40nm one(s?), its bound to bring down the average yield on this troublesome process-technology.

[LydianKnight]

Let's just hope they end releasing before end of year, pricing is already expected to be high, as it's the common for top-of-the-line cards on Day 0, even a bit higher if availability is poor, but... let's see in the end

[JH24]

This is disappointing news. For AMD because they need to sell as many cards as possible before Fermi comes, and for Nvidia because they would like to build up a stock before the cards are released. But in the end, consumers will have to pay the price, no matter which brand. :(


I really thought those issues were largely solved. I guess not.

[Galvin]

Hopefully global founderies won't have as many issues as TSMC

[LydianKnight]

But GlobalFoundries is completely out of scope here, as they still need to ramp up on 32nm bulk silicon as I did read couple of days ago, or something like that...

The 'funny' point in all of this lameful 40nm story is TSMC is kind of patching their 40nm process as it seems like they're reallly focusing their efforts on full-node 28nm process, if that is for real or was FUD, I don't really know...

Anyway, it was more or less expected to happen... going from less-than-30% to 60% seemd too 'magical' for me, although good for both companies...

[Redeemed]

Damn you, chamber matching issues, DAMN YOU!!! :mad:

Does this mean I've got more time to save up for my next upgrade?

That's kind of how I'm viewing this.

Although I'm incredibly disappointed cause I honestly hoped ATi would have all this time before Fermi to rack in card sales. But if they're having yeild issues then that puts supply on hold meaning customers can't purchase the cards even if they wanted to.

Really disappointing. With all the yeild issues TSMC is having it makes me wonder. Part of me hopes that ATi starts going through Global Foundry for their manufacturing. Would possibly cut costs for them.

I wonder- is it possible for ATi to have both GF and TSMC doing the chip manufacturing? So if yeild is low for TSMC, but high for GF, ATi has enough supply either way? If so, could nVidia do the same (not *would they*, but *could they*)?

[Johnny C]

After reading the title I thought to myself: "So TSMC started to produce Fermi chips."

That's kinda what I thought as well.

[josiahsuarez]

The 'funny' point in all of this lameful 40nm story is TSMC is kind of patching their 40nm process as it seems like they're reallly focusing their efforts on full-node 28nm process, if that is for real or was FUD, I don't really know...

I bet that's just PR BS to shine up their image from the bad press because of 40nm issues.

"hey don't pay attention to that, what's really important is that we're planning for a future process!"

[Atomizer]

I bet that's just PR BS to shine up their image from the bad press because of 40nm issues.

"hey don't pay attention to that, what's really important is that we're planning for a future process!"

That was actually a negative, as I read it, they are doing a "patch job" on their 40nm process, instead of fixing it completely, because they are focusing on 28nm

[Red_Shift]

That's kind of how I'm viewing this.
I wonder- is it possible for ATi to have both GF and TSMC doing the chip manufacturing? So if yeild is low for TSMC, but high for GF, ATi has enough supply either way? If so, could nVidia do the same (not *would they*, but *could they*)?
NVIDIA had GPUs being made on IBM, UMC and TSMC a few years ago, unless TSMC now has a contract of exclusivity, I think they can do the same again.

[CaptNKILL]

I wonder if nvidia has the power\money to ensure that almost all 40nm chip production is filled with their own orders, thus making ATI's chips almost impossible to obtain.

If nvidia offered an obscene amount of money and guaranteed orders to TSMC, would it be possible for them to basically stop the production of Radeon 5 series GPUs?

That would be one way that nvidia could make up for being so late this time around. Especially when it comes to any upcoming competing X2 products that need two GPUs.

I don't really know anything about the relationship between a chip maker and a manufacturer like TSMC, but this seems plausible to me.

[Viral]

Would sound like cause for a class action to me.....

[Muppet]

I wonder if nvidia has the power\money to ensure that almost all 40nm chip production is filled with their own orders, thus making ATI's chips almost impossible to obtain.

If nvidia offered an obscene amount of money and guaranteed orders to TSMC, would it be possible for them to basically stop the production of Radeon 5 series GPUs?

That would be one way that nvidia could make up for being so late this time around. Especially when it comes to any upcoming competing X2 products that need two GPUs.

I don't really know anything about the relationship between a chip maker and a manufacturer like TSMC, but this seems plausible to me.

I would find that highly unlikely, especially if ATI had a contract with TSMC. Which i'm pretty sure they would do.