Nvidia's GPU Material Defect Cost $475.9 Million

Nvidia weak die/packaging material gaffe was one of the worst and most damaging for the GPU company. Certain versions of previous generation MCP and GPU (G84, G86) products shipped before July 2008, especially in notebooks, would fail due to the bad material, which led to a ripple effect of in and out of warranty claims.

Years later, the charges against Nvidia are still taking their toll. In the most recent quarter, Nvidia reported a charge of $193.9 million which includes additional remediation costs over the GPU error.

With this $193.9 million on top of the $282 million of net charges from previous statements, the total net charge over the GPU material flaw totals $475.9 million.

Nvidia may have reason to be optimistic, however, as it believes that it may be finally done paying for its mistake. Nvidia CEO Jen-Hsun Huang believes that the $193.9 million could be the enough to put the problem behind the company.

"It's our best estimate," he said, talking to Cnet. "With much, much more understanding and more data than we had two years ago or a year ago. And we've had the opportunity to work with every single PC (maker) out there. So we think it's near the end."

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  • Anonymous
    I had one of these fail on my Acer, but they fixed it out of warranty. The heat had damaged the mobo, so when I got it back that went as well - they fixed that too FOC. Can't complain about Acers Customer Service, I can about Nvidias QC...
  • stom
    I work in a high-street PC repair store and we still see 1 or more machines daily (mostly HP DV2/6/9000's) with problems stemming from dodgy gfx chips. Our solution if to reflow (read, stick in oven) them all, which usually gets another 6 months+ from them.
  • bv90andy
    I am not a big Nvidia fan but I would not want to see them getting hurt to bad because that would mean less competition which is always bad.

    spam just noticed