Nvidia drops out of chipset business

[Creig]

Nvidia Halts Development of Core-Logic Sets.

Nvidia to Stop Investing into Future Chipsets

[10/07/2009 12:39 PM]
by Anton Shilov

Nvidia Corp. on Wednesday officially confirmed what was obvious long ago: it would stop development of its chipsets, which were quite popular several years ago. Due to unclear future of Nvidia?s positions on Advanced Micro Devices? and Intel Corp.?s platforms, the company does not want to continue spending on designing such chips. In addition, the company accused Intel of unfair behavior.

?We have said that we will continue to innovate integrated solutions for Intel's FSB architecture. We firmly believe that this market has a long healthy life ahead. But because of Intel's improper claims to customers and the market that we aren't licensed to the new DMI bus and its unfair business tactics, it is effectively impossible for us to market chipsets for future CPUs. So, until we resolve this matter in court next year, we'll postpone further chipset investments,? said Robert Sherbin, a spokesperson for Nvidia, reports PC Magazine.

Starting next year Nvidia will not be able to sell chipsets for AMD Opteron microprocessors, Intel Core i3/i5/i7 series processors with or without integrated graphics, next-generation Intel Atom chips code-named Pineview and so on. As a result, it is not surprising that Nvidia is halting its investments into research and development of chipsets.

Core-logic business is still very important for Nvidia. In the second quarter of its fiscal 2010, chipset business accounted for 31% of Nvidia?s revenue, up 27% quarter-over-quarter. The lion?s share of Nvidia?s chipsets featuring built-in GeForce graphics core, hence, the company risks losing market share as soon as Intel and AMD release microprocessors with integrated graphics cores.

http://www.xbitlabs.com/news/m...f_Core_Logic_Sets.html

 

[Schmide]

Is AMD really cutting them off? It seems like they put all their weight behind Intel solutions and got the shaft.

 

[lavaheadache]

I figured nVidia would understand this kind of business practice. Whenever there is a bully you can be rest assured there is always a bigger bully.

 

[nismotigerwvu]

Pot meet kettle....

 

[jiffylube1024]

Intel most definitely is engaging in unfair business practices. Nevertheless, very similar tactics have been Nvidia's modus operandi for years; the irony is strong with this one.

 

[lopri]

NVIDIA is right. It is Intel that has tangled everything w/ QPI (CPU and memory on X58, now DMI on P55) and this again shows how the current patent system slows innovation and how Intel abuses it. Its way of 'innovation' often means adding new patents to existing products so that others cannot compete with it.

I am not sure what the real story between AMD and NV, though. A mutual agreement, maybe?

 

[Barfo]

Yikes, there goes one third of Nvidia's profits...

 

[TheSayne]

Combine this disclosure with the departure from the high-end graphics market announced earlier in the week and they could put nVidia in a death spiral. All the news on the upcoming Fermi is bad also. How could such power house make so many bad decisions? Is this another 3dfx story?

 

[exar333]

Originally posted by: TheSayne
Combine this disclosure with the departure from the high-end graphics market announced earlier in the week and they could put nVidia in a death spiral. All the news on the upcoming Fermi is bad also. How could such power house make so many bad decisions? Is this another 3dfx story?

Don't forget Hydra is around the corner too (if the promises are true). Could be a perfect storm to relagate Nvidia back to just making GPUs. Maybe a "back to basics" might be good for Nvidia and their GPUs will be more competitive?

 

[scooterlibby]

Total bullshit as far as Nvidia is concerned:
http://www.tomshardware.com/ne...hics-chipset,8821.html

 

[Minas]

Originally posted by: ExarKun333

Originally posted by: TheSayne
Combine this disclosure with the departure from the high-end graphics market announced earlier in the week and they could put nVidia in a death spiral. All the news on the upcoming Fermi is bad also. How could such power house make so many bad decisions? Is this another 3dfx story?

Don't forget Hydra is around the corner too (if the promises are true). Could be a perfect storm to relagate Nvidia back to just making GPUs. Maybe a "back to basics" might be good for Nvidia and their GPUs will be more competitive?

I'd rather they concentrate on graphics chips for low-power mobile devices like Tegra (as well as their existing discrete gpu line). If they can get smartphones and similar devices playing full hd video at low power cost, I bet they could make a lot of money. Especially so, given the lack of competition from Intel who don't want to work with ARM chips, and AMD who can't afford to diversify.

Mobile devices are such a huge growth area, and the next generation are going to have the bandwith required to stream HD content, something people already use massively in their homes. I can't wait.

 

[WelshBloke]

Originally posted by: Minas

Originally posted by: ExarKun333

Originally posted by: TheSayne
Combine this disclosure with the departure from the high-end graphics market announced earlier in the week and they could put nVidia in a death spiral. All the news on the upcoming Fermi is bad also. How could such power house make so many bad decisions? Is this another 3dfx story?

Don't forget Hydra is around the corner too (if the promises are true). Could be a perfect storm to relagate Nvidia back to just making GPUs. Maybe a "back to basics" might be good for Nvidia and their GPUs will be more competitive?

I'd rather they concentrate on graphics chips for low-power mobile devices like Tegra (as well as their existing discrete gpu line). If they can get smartphones and similar devices playing full hd video at low power cost, I bet they could make a lot of money. Especially so, given the lack of competition from Intel who don't want to work with ARM chips, and AMD who can't afford to diversify.

Mobile devices are such a huge growth area, and the next generation are going to have the bandwith required to stream HD content, something people already use massively in their homes. I can't wait.

Yep, mobile devices are a massive growth area and nvidia make some fantastic products here. I think they will do really well here.

 

[WelshBloke]

Originally posted by: scooterlibby
Total bullshit as far as Nvidia is concerned:
http://www.tomshardware.com/ne...hics-chipset,8821.html

from your link,

But because of Intel?s improper claims to customers and the market that we aren?t licensed to the new DMI bus and its unfair business tactics, it is effectively impossible for us to market chipsets for future CPUs. So, until we resolve this matter in court next year, we?ll postpone further chipset investments for Intel DMI CPUs.

Intel have a habit of dragging things like this out for ages, unless NV have some uber lawyers or can give intel something they need, I don't see this being sorted out quickly.

 

[nitromullet]

What's the story with NVIDIA and AMD chipsets?

Starting next year Nvidia will not be able to sell chipsets for AMD Opteron microprocessors

Is that true, and if so, why? IIRC, NV pulled out of the Phenom chipset business on their own because their higher end desktop chipsets tended to cater more to gaming/SLI, and most gamers pretty much stopped buying AMD since Intel launched Conroe in 2006. (I know I haven't bought an AMD cpu since then).

 

[Genx87]

Originally posted by: Schmide
Is AMD really cutting them off? It seems like they put all their weight behind Intel solutions and got the shaft.

Yes, AMD effectively cut them off.

 

[Genx87]

Originally posted by: TheSayne
Combine this disclosure with the departure from the high-end graphics market announced earlier in the week and they could put nVidia in a death spiral. All the news on the upcoming Fermi is bad also. How could such power house make so many bad decisions? Is this another 3dfx story?

Please tell me you dont actually believe Nvidia is leaving the mid and high end market?

 

[OCGuy]

Originally posted by: TheSayne
Combine this disclosure with the departure from the high-end graphics market announced earlier in the week and they could put nVidia in a death spiral. All the news on the upcoming Fermi is bad also. How could such power house make so many bad decisions? Is this another 3dfx story?

Are you talking about a Charlie story?

They have the fastest single card still, I dont think they are doing too bad.

 

[VirtualLarry]

Originally posted by: Schmide
Is AMD really cutting them off? It seems like they put all their weight behind Intel solutions and got the shaft.

Yeah. It was NVidia that willinging abandoned the ATI chipset business. They just couldn't compete.

 

[Creig]

I'm surprised Nvidia even has to ask why they can't get an Intel license. Just a few weeks ago, Nvidia claimed that they were preventing PhysX from working on any system with an ATI video card installed to ensure that their customers received the optimal PhysX experience. Obviously, Intel is doing the same with their processors.

 

[dguy6789]

*Plays Nvidia a sad song on the world's smallest violin*

 

[MrK6]

Originally posted by: Creig
I'm surprised Nvidia even has to ask why they can't get an Intel license. Just a few weeks ago, Nvidia claimed that they were preventing PhysX from working on any system with an ATI video card installed to ensure that their customers received the optimal PhysX experience. Obviously, Intel is doing the same with their processors.

Sucks to be on the receiving end, doesn't it? Gotta love karma in action.

 

[SlowSpyder]

Is this move considered part of that 'open a can of whoop ass' statement?

 

[Wreckage]

Originally posted by: dguy6789
*Plays Nvidia a sad song on the world's smallest violin*

You have to love the ATI fan hypocrisy. When AMD goes bankrupt you guys will have to find something new to fill that void in your life.

Intel is merely shoring up their monopoly. A monopoly that will be built on top of AMD's bones.

 

[OCGuy]

This puts the AMD fans in a pickle. They are defending the very company that may put AMD out of business (being taken over is much more likely) just to put down nV?

The graphics division, even if it starts making money, will not keep that company afloat. They need to start making some CPUs that people actually want to buy, or who knows what they will be called 3 years from now? IBM?

 

[solofly]

Originally posted by: dguy6789
*Plays Nvidia a sad song on the world's smallest violin*

And Im enjoying it...