NVIDIA and AMD will likely stick with TSMC’s 28nm

 NVIDIA and AMD will likely stick with TSMCs 28nm

Taiwan Semiconductor Manufacturing Co. (TSMC) may have lost its contract with Qualcomm to produce the Snapdragon S4, but it’s still holding onto NVIDIA and AMD.  Sources familiar with TSMC’s business outlook are confident that NVIDIA and AMD will continue to rely on TSMC to manufacture their chips.

Taiwan Semiconductor Manufacturing Co. (TSMC) may have lost its contract with Qualcomm to produce the Snapdragon S4, but it’s still holding onto NVIDIA and AMD. Sources familiar with TSMC’s business outlook are confident that NVIDIA and AMD will continue to rely on TSMC to manufacture their chips. 

Sources have indicated to DigiTimes that:

“TSMC has the upper hand over Samsung in 28nm technology, yield rate and price and therefore changing foundry partnership involves high risks, the sources said. In addition, Nvidia is expected to consider Samsung's ARM-based processors in competition with its Tegra 3 processors.”

TSMC worked with AMD on the 28nm Southern Islands graphics chips, and production is scheduled to begin this fall.  AMD is also expected to adopt TSMC’s 28nm Bulk CMOS technology in 2013, which helps to further confirm that TSMC will hold onto other contracts despite losing Qualcomm.

Update: According to X Bit Laboratories Samsung and TSMC will both manufacture the Snapdragon S4 for Qualcomm.  We revealed earlier that UMC reportedly won a contract to produce the S4, which hints that Qualcomm may have switched foundry.  There are no confirmations as to whether or not Qualcomm will continue its partnership with TSMC in the future.

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