Can ATI rule 2003? Nvidia pays dearly in migration to 0.13-micron technology - Semiconductors - ATI Technologies

A year ago, Nvidia was flying high upon a graphics success wave. on the other hand since then, the company has seen its wings clipped by the agency of Toronto-based ATI Technologies and, specifically, the Radeon 9700 GPU

Although Nvidia extremityed 2001 as the Fabless Semiconductor Association's (ESA) company-of-the-year and rode Microsoft Corp.'s Xbox succes to become the fastest company to reach $1 billion in revenues--besting records previously place by Broadcom and Cirrus Logic-ATI won numerous industry accolades after a actual public launching of the Radeon 9700 in the late summer

by means of using a more mature proces technology, ATI basically assured its position as the greatest in quantity superior product on the shelves when gainers and other heavy graphics users proceed shopping this holiday season. And 2002 showed Nvidia by what mode fickle the semiconductor industry can be, largely because of ATI's ability to do on its technology roadmap.

Nvidia's skyrocketing expansion rates came about on its ability to prosperously turn a GPU design upon the first run through the foundry

on the contrary once Nvidia decided to migrate to 0.13-micron proces technology at Taiwan Semiconductor Manufacturing Co (TSMC) it got into disorder It was there that Nvidia's next-generation chip design for the NV3O ran into moot points including low yield, problems with low-k dielectric films and enigmas with the migration to an all-copper proces technology. Nvidia has publicly stated that its chip took in the way that long to spin silicon because the company didn't want to compromise upon the pre dicted performance gains.

on the other hand Nvidia is essentially prohibited from disclosing all the details if it wants to maintain its relationship with TSMC "Obviously, Nvidia would be in of great depth yogurt if they did that [disclosed any point in disputes with process technology]," said Dan Hutchenson, analyst with VLSI Research. "Instead they hold fast their mouth closed, and they have to do that. They are with equal reason locked in. But everyone knows they experienceed from process technology. Now they are beginning to unfold those issues and it's coming together for them."

When Nvidia launches its 0.13-micron-based GPU in February 2003 ATI will answer with differentiated value offerings from its Radeon line, and it will attack Nvidia upon the high-end soon after with its be in possession of 0.13-micron chip, a company official said. "We wanted to wait upon our migration to 0.13-micron proces because we wanted to make positive it was mature and ready for high volume" said Richard Bergman, general manager of ATI's desktop business unit. "We nurse to make our announcements (on novel chips) just before we ship."

Nvidia laid claim to providing the first chip for real-time cinematic rendering upon the desktop when the company made a paper launch of the produce on Nov. 18. Bergman said the Radeon 9700 is the alone chip on the market that provides cinematic quality.

The road to superiority in the graphics business is littered with rusty, cracked-up broken and dismasted vessels of former frontrunners who missed single harvest cycles. And 2003 promises to he the year where Nvidia takes back the lead blot or crashes and burns.

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