Nvidia Corp., a leading supplier of graphics processing units (GPUs), was not the first company to adopt 40nm fabrication process from Taiwan Semiconductor Manufacturing Company, but the firm plans to rather aggressively ramp up production using 40nm process technology. In fact, 25% of Nvidia’s products will be made using 40nm process by the end of the year, the company said.

“In terms of the mix towards the end of the year, […] my rough math would suggest about 25%, is my guess. I mean, there’s still going to be a lot of 55nm products. A lot of our MCP products, Ion, for example, is still based on 55nm and Ion is going to be running pretty hard. […] So, I would say, 25% to 30% is my rough estimate going into the end of the year,” said Jen Hsun Huang, chief executive officer and president of Nvidia, during a conference call with financial analysts.

Initially there will be three products made using 40nm process tech in Nvidia’s lineup, but the head of the company did not elaborate which products are the first to adopt the new fabrication process. Market rumours suggest that Nvidia plans to release its chips for mobile computers manufactured using 40nm process first with desktop parts following a little later. The scenario is similar to ATI’s transition to 40nm process: the company launched its Mobility Radeon HD 40nm products first with desktop ATI Radeon following later.

“We are ramping 40nm probably harder than anybody and so we have three products in line now in 40nm and more going shortly. So, this is a very important node. TSMC is working very hard. We have a vast majority of their line cranking right now with new products, and so we are monitoring yields and they are improving nicely week-to-week, and so at this point, there’s really not much to report,” said Mr. Huang.

For the first quarter of fiscal 2010 (ended April 26, 2009), revenue was $664.2 million compared with $1.2 billion for the first quarter of fiscal 2009, a decrease of 42%. During the first quarter of fiscal 2010, NVIDIA recorded a non-recurring charge of $140.2 million in connection with a previously announced cash tender offer to purchase employee stock options. Nvidia’s results for the first quarter of fiscal 2010, computed in accordance with U.S. generally accepted accounting principles (GAAP), included a net loss of $201.3 million, or $0.37 per share. Non-GAAP net loss for the first quarter of fiscal 2010, which excludes recurring stock-based compensation charges, the non-recurring charge related to the tender offer, and the associated tax impact of these items, was $46.7 million, or $0.09 per share.

Tags: Nvidia, Geforce, Nforce, 40nm