Compared to the makers' eagerness for the previous-generation GPUs, graphics card makers are rather conservative about the upcoming 28nm chips due to concerns such as TSMC's weak 40nm process yield rate issues may re-occur in its 28nm process and weakening demand for graphics cards and lower-than-expected gross margins.
Since high-end discrete graphics cards are currently seeing weakening sales, while demand for mid-range and entry-level graphics cards is gradually being replaced by AMD and Intel's GPU-integrated processors, demand for discrete graphics cards is only expected to become weaker, the sources noted.
Although previous rumors have indicated that TSMC's poor 28nm process yield rate could affect Nvidia's launch of its 28nm GPUs on schedule at the end of 2011, as TSMC already announced its 28nm process has entered mass production, Nvidia's new Kepler GPUs are expected to be announced in December.
Meanwhile, AMD's 28nm Southern Islands-based Radeon HD 7000 GPUs have already entered production with official launch expected in first-quarter 2012.
