ATI Technologies will significantly increase its orders to foundry partners Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) this year, according to CEO KY Ho. The Toronto, Canada, based graphics chipmaker said the company will not seek any alliance with other chipmakers such as IBM. Its orders to the Taiwanese chip-making duo will increase significantly this year compared to 2002, Ho said in a telephone interview with the media. All of ATI?s 0.13-micron chips and most of its 0.15-micron chips are manufactured at TSMC, although the company has begun to manufacture some of its RV280 graphics chips on UMC?s 0.15-micron processes. Nvidia, TSMC?s largest client, signed a deal with IBM last week to manufacture its new generation GeForce FX graphics chips. It is believed that Nvidia hopes to use the new NV35 chip, to be introduced in May, to enhance its competitive edge in the high-end market against the Radeon 9800 (R350) from ATI Technologies.

In the interview conducted in Mandarin, Ho acknowledged he has heard rumors regarding Nvidia?s complaints about TSMC?s advanced 0.13-micron processes, though he believes that the quality of advanced manufacturing processes at TSMC is not bad, actually and may be as good as other players. ATI is currently manufacturing its products on TSMC?s 12-inch wafers using 0.13-micron processes and said its new product series ? the Radeon 9600 (RV350) ? will be developed using TSMC?s 0.13-micron technology. With regards to UMC, Ho said ATI is fabricating its Radeon 9200 (RV280) series chips using UMC?s 0.15-micron technology and will also consider producing its chips on UMC?s 0.13-micron processes in the future. As for concerns about capacity shortage in 0.13-micron processes in the second half, Ho said he is not particularly concerned given ATI?s position as one of TSMC?s main clients. ATI said it will not begin considering production using 90nm technology until 2004. Source: DigiTimes