Their not backtracking, the original GF3 was made on the same .15u (150nm) process that the Titanium series is currently being fabbed on. TSMC was in no way capable of providing sufficient volumes of 0.13u chips upon the initial launch of the GF3, even were they able to Transmeta would have had first dibs on that for their TM5500 and TM5800.
TSMC has been having issues with their 130nm process technology, many manufacturers among which nVidia, Broadcom, VIA, and Transmeta have been very upset with the problems TSMC is having implementing its CVD-based system for their 130nm process.
nVidia and TSMC havent been getting along to well of late after nVidia's decision to go with UMC as an alternative supplier for their nForce and XBox related chip development.