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NVIDIA Chips Shortages
by Anna Filatova
12/09/2001 | 04:37 AM
According to the graphics cards manufacturers, NVIDIA failed to provide enough Titanium chips (GeForce2 Ti, GeForce3 Ti 200 and GeForce3 Ti 500) last quarter to satisfy the growing demand. Among the major reasons that stimulated the extreme growth of the demand, so that it even exceeded the bravest forecasts, we could mention the following:
- Launching of new competitive solutions from ATI, namely, RADEON 8500 and RADEON 7500, pushed NVIDIA to reduce the prices of its solutions, so that the advanced graphics cards on NVIDIA solutions grew more popular.
- Also top graphics cards popularity grew up because of the increase in Pentium 4 systems sales, which in its turn was provoked by a significant CPU prices drop.
- All the quarter long GeForce2 MX chips were in great shortage, because NVIDIA was discontinuing them little by little giving way to a new budget 3D accelerator aka NV17, which is due in the beginning of next year.
- Because of the increased production of 0.15micron chips by TSMC, where not only NVIDIA but also ATI, VIA and others place their orders, this fab appeared unable to satisfy NVIDIA’s demand.
Of course, such a long lasting shortage couldn’t end up without any consequences for NVIDIA, as a result:- Graphics cards manufacturers had to make up for the insufficient Titanium chips and started using more solutions from other companies, such as ATI, SiS and STM alongside with older NVIDIA chips (GeForce2 Pro, in the first place).
- NVIDIA started considering the possibility to use production lines of another fab, UMC, and even ordered some chips for its X-Box gaming console there. This fab may be very likely to take some orders for NVIDIA’s upcoming high performance NV25 solution as well, which should be announced in early next year.
- It is also quite possible that NV17 and NV25 will be postponed because of the production problems just mentioned above, as NVIDIA is going to have them made with 0.15micron manufacturing technology as well. By the way, the NV17 announcement, which had been initially planned for the late 2001, was now moved to January 2002. To be fair we should say that the same thing may happen to ATI and their RV250 chip planned for March launch, too.
All in all, it looks as if the situation with TSMC production capacities will have a great influence on the graphics market for a while. For instance, the fab doesn’t have enough production lines for mass manufacturing of 0.13micron chips, so that the chip developers have to be happy with 0.15micro technology only. It seems that only NV30 will be the first 3D graphics accelerator made with 0.13micron technology. All the rest, including NV25 from NVIDIA and RV250 from ATI will be made with 0.15micron technology.
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