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. With Nvidia indicating that the problem is due to the packaging material used with some of its chips, which was compounded by the thermal design of some notebooks, industry sources in Taiwan believe the problem is most likely related to either the solder bumping process used by one (or more) of Nvidia’s manufacturing partners or the company’s PCB substrate supplier(s).

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