NVIDIA delaying next-gen 40nm graphics chips?

Previously due to ship this spring, the next generation of NVIDIA's 40nm chips is now said delayed until sometime in the third quarter, while the rumored GT212 flagship is reportedly not likely to see the light of day. The GT212 was one of three chips based on the latest compact 40nm manufacturing process, and the delays are believed to be caused by the same quality issues that led to parts failures in GeForce 8- and 9-series chips based on the 55nm process, which may have been triggered by cost-savings efforts, a resource shortage or a similar factor.

At the same time, the company's accountants are forecasting fourth quarter revenues will drop anywhere from 40 to 50 percent from the previous quarter, which would result in revenues between $448 to $538 million and thus significantly lower than last year's Q4 revenue of $1.2 billion. The low estimate is due to weak user demand in the current economy and what the company is naming as inventory reductions its channel partners.

The 40nm GPU delay is the latest in NVIDIA's string of troubles, ranging from a near $121 million financial loss last summer to job cuts. [via TheInquirer]

Filed under: computers, industry
Other story tags: NVIDIA, GeForce