Although the yields of semiconductors made using 28nm fabrication process at Taiwan Semiconductor Manufacturing Company seem to be improving, their undersupplies is just becoming more evident. For Nvidia Corp., it just hurts.
Nvidia on Friday said that the problems with supply of chips made using 28nm process technology at TSMC persisted throughout its first quarter of fiscal 2013. Even though the company's better-than-expected margins signal that the costs are getting down, which is an indicator of improving yields for leading-edge products, the firm does not expect its supply issues to get resolved shortly.
"Demand is high for Kepler and although supply will continue to improve, we are not able to meet all our OEM and channel demand in Q2 FY2013. We do not expect the 28nm supply situation to resolve itself until later this year," said Chris Evenden, director of investor relations at Nvidia, during quarterly conference call with financial analysts.
For the Q1 FY2013 that ended on April, 29, 2012, Nvidia reported revenue of $924.9 million, net income of $60.4 and gross margin of 50.1%. The results were generally better than expected by many, primarily thanks to shipments increase of Tegra 3 system-on-chip.
Nvidia's operating expenses (to which the company usually attributes GPU/GPGPU implementation costs) were even higher than projected by around $7 million at $390.5 million. Nonetheless, the firm's gross margins was 50.1%, higher than predicted 49.2%. This happened primarily because of sound launches of the GeForce 6-series GTX "Kepler" products that are now sold in price ranges between $399 and $999.
Due to seasonally weak calendar first quarter, sales of Nvidia were down across both consumer and professional lines.
Tags: Nvidia, TSMC, Geforce, Kepler, 28nm, Business, Tesla, Quadro
Comments currently:
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Discussion started: 05/11/12 07:45:55 PM
Latest comment: 05/14/12 08:03:59 AM
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This analysis would have been a lot better if:
1) It compared Q1 FY2013 to Q1 FY2012 since technology sector and especially consumer items in this industry are cyclical;
2) It discussed forward looking forecast for revenues, which are ahead of Wall Street estimates.
Transition to 28nm has been more expensive than for prior nodes and NV is now paying on a per wafer not per die basis. That would hurt the company especially at the beginning of 28nm process ramp, especially since TSMC is capacity constrained.
Nonetheless, Q2-Q4 should look much better as availability improves and more NV products find their way into laptops and desktops.
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Posted by: BestJinjo
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Date: 05/11/12 07:45:55 PM]
2.
You can B.S. some of the people, some of the time... but not all of the people, all of the time. Eventually the truth emerges.
http://semiaccurate.com/2...keplers-raise-a-red-flag/
http://semiaccurate.com/2...supply-keplergk104gtx680/
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Posted by: beenthere
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Date: 05/11/12 08:04:25 PM]
+ expand thread (2 answers)
- collapse thread
The one key piece of the puzzle that SemiAccurate moles recently managed to confirm was that the problem is indeed Nvidia’s fault, it is a design problem.
LOLLL, what an undeniable and concrete source. In other news, charlie is a biased anti-nvidia fanboy who pulls things out of his ass and calls them facts.
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Posted by: eddman
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Date: 05/12/12 04:12:47 AM]
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Posted by: xrx
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Date: 05/13/12 02:20:21 PM]
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Nvidia: Hey AMD can you help us out? We are running on very short supply for our 28nm chips. AMD: "While of course we can come in. Muhaaaa."
show the post
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Posted by: SteelCity1981
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Date: 05/11/12 10:38:48 PM]
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show the post
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Posted by: beenthere
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Date: 05/12/12 09:57:56 AM]
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Was there any point in having the same chart twice, other than to make us wonder if we were going insane, or if we looked hard enough we'd find a difference?
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Posted by: TA152H
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Date: 05/13/12 11:04:58 AM]
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Er...where is AMD going to turn to now? GloFo sucks....TSMC sucks....
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Posted by: AnonymousGuy
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Date: 05/13/12 11:09:46 AM]
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GloFo is doing fine with 32nm and TSMC is also doing fine with 28nm. Nvidia's issues is their design, not the Fabs.
AMD isn't having issues getting 28nm chips from TSMC that work but Nvidia is.
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Posted by: beenthere
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Date: 05/14/12 08:03:59 AM]
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