Both leading developers of graphics processing units reportedly began to reduce orders on their entry-level graphics chips at TSMC and UMC. The move may be an indication that both prep more powerful graphics processors to be offered for appropriate market segments.

NVIDIA Corporation recently reduced wafer starts of its GeForce FX 5200-series graphics processors at TSMC by about 66%, while ATI Technologies also initiated to cut down the number of orders for RADEON 9200-series chips at UMC, says report at DigiTimes web-site.

The news-story attributes declining orders for entry-level graphics processors to rising demand for Intel’s latest i915G chipset with integrated graphics core among leading PC makers, such as Dell and HP. The assumption of the report may seem strange, as both leading graphics processors makers indicate boost in revenues from quarter over quarter, which forces both not to let the customers go.

Two more possible reasons for ATI and NVIDIA to start phasing out their RADEON 9200- and GeForce FX 5200-series graphics processors may be a shift of demand to higher performing offerings, such as RADEON 9550/9600 SE or GeForce FX 5500/5700 LE, or short release of newer products that would force out the current mainstream offerings into entry-level market segments.

ATI and NVIDIA will shortly roll-out their new graphics processors for entry-level and mainstream markets, according to earlier reports. ATI reportedly prepares code-named RV410 visual processing units, NVIDIA is getting ready to launch its NV44 and NV43/NV41 graphics processing units later this year.

Officials for ATI and NVIDIA did not comment on the story.