IBM and AMD - Where would it leave nVidia?

[elroy]

Have a look here - http://www.siliconstrategies.com/story/OEG20030509S0034. If this is true, what would happen to the deal between IBM and nVidia?

 

[KimB]

I don't see it meaning that much. If the rumor is confirmed, then IBM will just be getting more business, which should make it easier for nVidia to get decent deals and advanced technology on the chips that IBM fabs for them.

 

[RussSchultz]

I don't see it meaning that much. If the rumor is confirmed, then IBM will just be getting more business, which should make it easier for nVidia to get decent deals and advanced technology on the chips that IBM fabs for them.

Generally, more business for the supplier means worse prices for the consumer.

However, in this case it can mean that AMD and IBM are putting their money together to build a next gen fab, which would help out NVIDIA (or any other fabless semiconductor company that goes with IBM).

The interesting part is the fab, according to this article, is going to be gutted and retrofitted. However, its supposedly the fab used for NVIDIAs stuff w/IBM. Somebody's wrong about something.

 

[MuFu]

However, its supposedly the fab used for NVIDIAs stuff w/IBM.

Where does it say that?

MuFu.

 

[RussSchultz]

Reports have surfaced that IBM is gutting its so-called Advanced Semiconductor Technology Center (ASTC) in East Fishkill

It doesn't, directly, though I though that the NVIDIA/IBM fab was the same one. I suppose I should check that out before stating it as a fact.

 

[RussSchultz]

Ahh...here we go:

http://www.beyond3d.com/forum/viewtopic.php?t=5057

IBM plans to begin manufacturing the next generation GeForce graphics processor this summer at IBM's state-of-the-art 300mm plant in East Fishkill, New York. The new IBM $2.5 billion (£1.58 billion) chip-making facility combines, for the first time anywhere, IBM chip-making breakthroughs such as copper interconnects, silicon-on-insulator (SOI) transistors and low-k dielectric insulation on 300mm wafers. The new facility began operation last year, and will ramp up in capacity throughout 2003.

Like I said, it seems like somebody is confused about something.

 

[MuFu]

Cheers. No possibility of some kind of co-op agreement as far as the fabspace goes, in your opinion?

MuFu.

 

[RussSchultz]

I didn't say that. Just that the siliconstrategies article stated they were "gutting the facility", which would suggest to me putting it out of commision for a while. That seems awful strange considering it came on line last year.

Maybe they (Silicon strategies) were just talking in hyperbole, or there's two separate 'fabs' at the same facility at East Fishkill (one of which is going to be refitted to support 90 nm)?

 

[pascal]

IIRC East Fishkill may have more than one fab.

 

[MuFu]

Just that the siliconstrategies article stated they were "gutting the facility", which would suggest to me putting it out of commision for a while.

Ah yes, sorry my mistake. Overlooked the fact that the fab would have to be online "this summer" in order to provide for nV as mentioned in that excerpt.

MuFu.

 

[JF_Aidan_Pryde]

It better have more than one fab, Sony is making 'CELL' there too.

 

[elroy]

The way that I read the article, it sounded as though IBM would actually sell the East Fishkill fab to AMD, once it had been gutted and refitted. Or am I just reading too much into it?

 

[asicnewbie]

The way that I read the article, it sounded as though IBM would actually sell the East Fishkill fab to AMD, once it had been gutted and refitted. Or am I just reading too much into it?

For one thing, East Fishkill is a multi-purpose facility (research + production) (http://www.ibm.com/news/us/2002/07/31.html) that is producing silicon for several customers (Xilinx and NVidia.)

http://www-3.ibm.com/chips/news/2002/1216_xilinx.html - IBM and Xilinx prepare for production of first 90nm chips on 300mm wafers

http://www-3.ibm.com/employment/us/vt/efk_info.shtml - Virtual tour East Fishkill

I don't see IBM relinquishing the entire facility to another company, but the rumor-article is pretty ambiguous. My interpretation of the 'rumor' is that IBM is simply transforming one (or more) of those divisions into a production-foundry, then transferring operational-control to AMD (with IBM retaining ownership.) Partnerships of this kind are not without precedent, but at the moment I can't think of any examples.

It may disturb some people to know that, Intel's developmental fab is as large as IBM's East Fishkill (A developmental-fab is primarily a research facility.) http://www.intel.com/research/silicon/wafers.htm For a list of Intel's fabs, see http://www.intel.com/pressroom/kits/manufacturing/manufacturing_qa.htm (click on the world-map)

 

[elroy]

Thanks for clearing that up asicnewbie!