Nvidia warns of high failure rates Page: 1
Nvidia warns of high failure rates
Graphics card manufacturer Nvidia has warned investors to expect rough times ahead due to high failure rates of “previous generation” devices. Reportedly the issue is only currently known to affect certain previous-generation mobile graphics chipsets.
Betanews has quoted a filing made by Nvidia to the US Securities and Exchange Commission in which the company warns that it will take a “$150 million to $200 million charge against cost of revenue to cover anticipated customer warranty, repair, return, replacement and other consequential costs and expenses arising from a weak die/packaging material set in certain versions of our previous generation MCP and GPU products used in notebook systems.”

Although the identity of the affected products is not given in the filing, the company goes on to state that the chips were “included in a number of notebook products that were shipped and sold in significant quantities,” and that “certain notebook configurations of these MCP and GPU products are failing in the field at higher than normal rates.”
The cause of the high failure rate is still unknown but is rumoured to be caused by excess heat, which may mean a recall on the affected chipsets.
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