United Micro Electronics has reportedly landed orders to make the RADEON X1000-series processors for ATI Technologies. The chips will be similar to those produced using 90nm technology at TSMC and will include all the three chips that power the new family of ATI’s visual processing units (VPUs), including RADEON X1800, RADEON X1600 and RADEON X1300.

“Low yield rates at TSMC have given UMC an opportunity to win 90nm orders from ATI. UMC will enter volume production of the R521, RV531 and RV516 chips for ATI from the end of this year, the sources noted,” a news-story over DigiTimes web-site claims.

Earlier it was reported that ATI had started designing code-named R516 VPU for entry-level graphics card market. It is not clear what the R516 actually is, as ATI typically calls its products aimed at mainstream, entry-level or value markets with RV-series code-names, whereas products for performance-mainstream and higher market segments are named with R-series code-names.

ATI Technologies itself recently confirmed that its next-generation graphics processors formerly known as R520, RV530 and RV515 were in mass production at TSMC. The company also reassured its investors and industry observers that TSMC was an “excellent manufacturing partner” who could deliver “yields and speeds”.

“TSMC has done an excellent job of delivering on yields and speeds. As ever, they’ve proven themselves an excellent manufacturing partner as we ramp up some of the most advanced technology consumers have ever seen,” said Rick Bergman, senior vice president of ATI’s PC Business Unit.