Interesting article. Summery; Key points:


http://www.brightsideofnews.com/news/20 ... -next.aspx



Very interesting stuff. Samsung would be a very good alternative for nvidia. TSMC just isnt capable of the capacity their customers require. I think nvidia would be very wise to branch out into a new fab. I have reservations on this. I think it would be worth it for nvidia to do something most dont. That is to not limit themselves to either fab but to invest in both at the same time. This would cost a lot more but the benefits would be priceless in the long run. Work with two fabs simultaneously to give nvidia more leverage and less constraints. One fab would eventually best the other but stick with both then your gambling less and executing more.

It would give nvidia a huge leg up on their competition even if it would also be costly. Without any debt, nvidia are well positioned to do this. Right now everyone is fighting over small quantities and its hurting. Nvidia needs a way to edge out, to rise above. I think the extra cost of engineering future designs at two different fabs will catapult them to their goals.

Currently in these times, Nvidia is now being held back tremendously because of their fab-less nature. They spent tons of cash on the science and engineering. unbelievable designs already ready for the future. But in this race everyone is stuck in first, everyone but intel. Nvidia absolutely has to stretch out or they will not gain the ground necessary to grow. It is imperative they move very quickly with a grand new plan of action.

what do yous think?

i agree with most of this. i pointed out to Nvidia years ago- that having only one foundry could be a disaster - if Taiwan has a big earthquake - Nvidia will shut down.

The other choice would be IBM

Each fab costs on the order of 6 billion to build and 3 billion to re-tool for a new node. At least that is what I've heard. It's a whole damn lot of money. Two fabs would damn near equal the cost of Nvidia's market cap.

Samsung already has a fab and they are working on the 20nm node. Are you saying that it would cost nvidia 6 billion to use the node samsung already has? i dont get what your saying really. nvidia engineers may already have silicon from Samsung according to the article. What i am suggesting is that nvidia continue to work out the bugs to mature the samsung 20nm silicon but to also use TSMC at the same time.

Most likely nvidia has began running test wafers at Samsung. But my fear is they will only do this for 1 chip. Or that they will use samsung for a single chip that they would not run at TSMC. I think they could use both at the same time. Example, Maxwell. Engineers working on the TSMC silicon for MAxwell and have extra labs paying for Maxwell engineered on samsung fabs. Maxwell is just an example. I just think they need to keep all their eggs out of one basket. It doesnt even have to be a single design but to have multiple fabs and engineers working to give nvidia an edge on its competitors. One could be more risky, or alternate versions. TSMC is not able to take all these companies on at the same time efficiently. TSMC has their mouth way too full. But nvidia has experience with them. TSMC is a sure thing for them, slow but sure. Dropping TSMC for samsung could be way to risky. The best alternative is use both. Pay extra to mature silicon at both fabs. This offers many potential benefits in the long run, and it will give nvidia advantages over its competition. especially in ARM spaces.

I meant for Nvidia to build their own fab. Which is where I thought you were going with that above and I was obviously mistaken?

They don't have to put up that kind of money. Is anyone suggesting that Nvidia actually buy their own fab? i think not. Just spend the money to run their product line at both TSMC at at Samsung. It's a big R&D expense that Samsung will share with them.

I bet this will help nvidia's pricing at TSMC too. Nothing like the threat of losing one of your largest customers to make a FAB bend over backwards to help you. TSMC has done it before when nvidia took nv40 to IBM.

Strategy
Since i suggested it, more-or-less, i guess i like it

Is UMC still around? I know they were a smaller operation, but have they been absorbed by another larger company?

Yes, they still exist in their own right.

http://www.umc.com/english/about/o_1.asp

http://en.wikipedia.org/wiki/United_Mic ... orporation