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Sunday, 11/10/2002 5:12:14 PM

Sunday, November 10, 2002 5:12:14 PM

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nVidia admits to TSMC having .13u yield problems, but they now seem to be fixed.

TSMC fixes 0.13-micron yield problems

http://www.siliconstrategies.com/story/OEG20021108S0020

One out of two ain't bad. During a conference call with analysts on Thursday, officials from Nvidia Corp. insisted it is seeing “terrific yields” for its 0.13-micron graphic chips, which are manufactured on a foundry basis by its key partner--Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), according to a report from SG Cowen Securities Corp. today.

For months, TSMC was struggling with its 0.13-micron process, which impacted its foundry customers, such as Altera, Broadcom, Nvidia, Qualcomm, Via, and others. At one point, TSMC's 0.13-micron yields were reportedly below the 50% mark.

In the conference call, Nvidia said “yields were poor earlier this year, but is now seeing terrific yields,” according to the report.

The Santa Clara, Calif.-based chip maker also admitted it has looked at IBM Corp.'s 0.13-micron foundry process, of which is calls “fantastic.” But Nvidia claims it is sticking with TSMC.

Oh...by the way, reeling from the PC downturn, Nvidia on Thursday also reported sales of $430.3 million for the third quarter of 2002, roughly flat from $427.3 million in the previous quarter but up 18% from $365.0 million in the like period a year ago.

Net loss for the third quarter of fiscal 2003 was $48.6 million, or minus $0.32 per diluted share, compared to net income of $41.3 million, or $0.24 per diluted share, for the third quarter of fiscal 2002. In the previous quarter, it posted a net of $5.3 million (see Oct. 7 story ).

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