Nvidia contract makers in Taiwan low-key over defective chip reports
Nvidia’s Taiwan-based graphics chip contract makers are being low-key after the US chip designer informed investors on July 3 that will take a charge of US$150-$200 million related to expenses stemming from issues discovered with die/packaging materials used in previous generation notebook products.
Sources at foreign institutional investors in Taiwan indicated that the defective products were Nvidia Geforce 8500M-series graphics chips launched in 2007, and that the problem was caused by related bump processing. Taiwan Semiconductor Manufacturing Company (TSMC), Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industrial (SPIL) all provide bump processing services to Nvidia. When ask for comment by Digitimes TSMC declined citing client confidentiality, while ASE and SPIL both claimed to know nothing about the issue because the defective chips are older generation products.
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