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Nvidia Corp., a leading supplier of standalone graphics processing units as well as various core-logic sets, said that even though it was not the first company to adopt the 40nm process technology of Taiwan Semiconductor Manufacturing Company, it is currently the largest customer to utilize the 40nm fabrication process and reiterated that in the future the 40nm-based products will represent a large portion of the company’s revenue.

“I think the general buzz around the industry is that we are by far the largest producers of 40nm today and I think that that is, probably, consistent. We have shipped more and earlier than just about anybody, and we have not spoken a lot about our 40nm products because we have fabulous products that we are currently shipping and so we tend not to pre-announce products until the customers are really shipping themselves. We are ramping our 40nm product[s] now,” said Jen-Hsun Huang, chief executive officer and president of Nvidia Corp., during a quarterly conference call with financial analysts.

It is interesting to note that the world’s first mobile graphics processor made using 40nm process technology – ATI Mobility Radeon HD 4830/4860 (M97) – was announced by ATI, graphics business unit of Advanced Micro Devices, back in early March ’09, whereas the first 40nm graphics chip aimed at desktops – ATI Radeon HD 4770 (RV740) – was launched in late April ’09 and is currently available in retail.

Nvidia announced its first 40nm mobile graphics chips in mid-June ’09 and detailed its 40nm desktop graphics processors in early July, 2009. At present Nvidia only sells 40nm chips to original equipment manufacturers.

Mr. Huang re-emphasized his earlier claim that by the end of the year 25% of its revenue will be represented by chips manufactured using 40nm fabrication process and said that in Q3 2010 the vast majority of Nvidia’s products will be produced at 40nm node.

“By Q4, [40nm products] will represent a very large portion of our revenue. It certainly will not represent the vast majority of it. […] My expectation is that by Q3 [2010] timeframe, it will represent the vast majority of our products,” claimed Mr. Huang.

At present Nvidia does not address the market of high-end graphics cards with its 40nm chips. Instead, its new graphics processors are small and thus are less expensive to manufacture. However, thanks to DirectX 10.1 and GDDR5 support, they can not only boast with better functionality than previous-generation products, but also with higher performance in some cases.

“Our gross margins are higher on 40nm products because they are fresher products and the die sizes are lower, [so] they tend to be more cost effective for us,” added Mr. Huang.

Tags: Nvidia, 40nm, Geforce, TSMC

Discussion

Comments currently: 12
Discussion started: 08/07/09 08:50:27 AM
Latest comment: 08/10/09 09:44:22 PM
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1. 
This is just the typical PR bull that we have always got from nVidia, the company that had the gall to say ATI was irrelevent just as they started to kick nVidia's arse in the marketplace. Case in point is their recent quarterly results. They can keep trying to pretend their competition doesn't exist, but it'll be their undoing if they do.

0 2 [Posted by: genie  | Date: 08/07/09 08:50:27 AM]
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2. 
Unfortunately for ATI fans Nvidia outsells them by more than 3 to one. Latest quarter 775 million to 251 million. ATI three years ago had parity with Nvidia until AMD took it over.
0 0 [Posted by: beck2448  | Date: 08/07/09 08:59:18 AM]
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- collapse thread

 
That's not really a fair comparison.
The 251 ml number from AMD only includes GPU's sold under the ATI brand. Chipsets are sold under the AMD brand and even FireStream is sold under the AMD brand.
AMD sold the Imageon and Xilleon divisions which made hundreds of millions of dollars before AMD tookover.
So obviously it's not 3:1.
0 0 [Posted by: Milli  | Date: 08/08/09 04:01:34 AM]
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ATI firepro graphics is under ATI brand and included in graphics division revenue, an area where Nvidia continues to dominate with more than 70% of the market
0 0 [Posted by: beck2448  | Date: 08/08/09 02:54:34 PM]
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I said FireStream not FirePro and if this is all you can reply ....
0 0 [Posted by: Milli  | Date: 08/09/09 04:02:42 AM]
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Out of these almost five million extra GPUs, the majority went to AMD, who market that they had 41.1% growth in shipped units from the first to second quarter of 2009. AMD's ATI Radeon and FirePro families now take 18.4% of world-wide graphics market, up from a recession-stricken 17.1% in Q1'2009.

Q2-2009

AMD-ATI 18.13 %
Intel 50.13 %
Nvidia 28.74 %

http://www.brightsideofne...rket-share-in-q22009.aspx
0 2 [Posted by: Blackcode  | Date: 08/09/09 08:28:13 AM]
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Not only you are accounting Nvidia chipset sales ( about 30% of their total revenue) in those 750M, but also mind that Nvidia is losing money on selling it`s chip while Ati is making profit. ATI could sell 4890 for 100 bucks 4870 for 70 and 4850 for 50. And see massive increase in revenues but their profits then would drop.

So in short Nvidia is selling their Bentley`s and Porsches for VW prices
0 0 [Posted by: Nameisis  | Date: 08/09/09 02:37:34 PM]
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Maybe you have right ,but i must add ,Nvidia sell defective Porches ,and most of people dont see that.
0 2 [Posted by: Blackcode  | Date: 08/09/09 10:28:55 PM]
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That`s true, and it`s sweet to see that their plan of increasing voltages and using bad materials backfired on them.
0 0 [Posted by: Nameisis  | Date: 08/10/09 04:45:32 AM]
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LOL ...750 million of gpus/chipsets in THREE MONTH ... you smoking that bullshit or what do you know what kind of volume do you talking about even Intel dosnt produce than 10 millon in one quarter of their CPUs maybe 20 mil if we include all CPUs chipsets. And with quarterly 750mil of chips every squatting gipsy would have some gpu or thre hanging around their neck
0 0 [Posted by: OmegaHuman  | Date: 08/10/09 07:38:52 PM]
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3. 
Typical Nvidia propaganda ,real true is that they dont produce any 40 nm GPU yet,so dont flood us with Nvidia PR."Dx 10.1 is not important" say Nvidia before 2 years now they start to produce DX 10.1 GPU LOL.
0 2 [Posted by: Blackcode  | Date: 08/07/09 11:53:39 AM]
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4. 
beck2448
Come on...

That's not dedicated gpu my friend. The thing the matters.

In all those "share" schemes they include IGP motherboards.


Reality check?
Do Ati sell IGP chipsets to intel? No
Do Ati sell IGP chipsets to apple? No
Most laptops use nvidia chipsets (when they're not intel)

We need a dedicated gpu charts. If so prepare to be surprised.

0 2 [Posted by: Nintendork  | Date: 08/10/09 09:44:22 PM]
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