IBM, NVIDIA Form Strategic Alliance
NVIDIA Awards Next Generation GeForce GPU Manufacturing Design to IBM's Advanced Semiconductor Foundry
FOR IMMEDIATE RELEASE:
EAST FISHKILL, N.Y., & SANTA CLARA, CA. -- MARCH 26, 2003 -- IBM and NVIDIA (Nasdaq: NVDA) today announced the two companies have formed a multi-year strategic alliance under which IBM will manufacture NVIDIA's next-generation GeForce graphics processor units (GPUs).
State-of-the-art GPUs, like NVIDIA's Geforce FX, have become process and manufacturing drivers. To deliver the immense computational power needed to create cinematic images in real-time, NVIDIA's GPUs require the most sophisticated process technologies.
As part of the agreement, NVIDIA will gain access to IBM's comprehensive suite of foundry services and leading-edge manufacturing technologies, including power-efficient copper wiring, and a roadmap that leads to 65nm (nanometer; a billionth of a meter) in the next several years, giving the company the necessary tools to advance its state-of-the-art GPUs.
"IBM is bringing a new foundry business model by combining advanced technology coupled with close customer integration," stated Jen-Hsun Huang, president and CEO at NVIDIA. "Our strategic alliance with IBM gives NVIDIA unprecedented opportunity to bring groundbreaking GPU products to the market. The combination of NVIDIA and IBM's capabilities will be powerful."
IBM plans to begin manufacturing the next generation GeForce graphics processor this summer at IBM's state-of-the-art 300mm plant in East Fishkill, N.Y. The new IBM $2.5 billion chip-making facility combines, for the first time anywhere, IBM chip-making breakthroughs such as copper interconnects, silicon-on-insulator (SOI) transistors and low-k dielectric insulation on 300mm wafers. The new facility began operation last year, and will ramp up in capacity throughout 2003.
"We have a deep customer collaboration with NVIDIA, the kind of support normally reserved for IBM's Server group and very select large OEM partners," said Michel Mayer, general manager, IBM Microelectronics Division. "We understand that leading fabless semiconductor companies, like NVIDIA, need to get to market as quick as possible, with the latest technologies, yet need to keep their focus on their customers and products, not on manufacturing."
Beyond the chip manufacturing technology, IBM also offers an advanced automated management system that not only controls production on the factory floor, but provides a connection for customer and supplier systems and processes, allowing closer integration across the supply chain. IBM's automated management system provides NVIDIA with opportunities ranging from improved operation to greater efficiency and competitive advantage, while using e-business techniques to adapt to real-time, on-demand influences from the marketplace.
About IBM Microelectronics
IBM is a recognized innovator in the chip industry, having been first with advances like more power-efficient copper wiring in place of aluminum, faster silicon-on-insulator (SOI) and silicon germanium transistors, and improved low-k dielectric insulation between chip wires. These and other innovations have contributed to IBM's standing as the number one U.S. patent holder for ten consecutive years. More information about IBM Microelectronics can be found at: http://www.ibm.com/chips.
Certain statements in this press release, including the statements relating to the Company's performance expectations for NVIDIA's family of products and expectations of continued revenue growth, are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Such risks and uncertainties include, but are not limited to, manufacturing and other delays relating to new products, difficulties in the fabrication process and dependence of the Company on third-party manufacturers, general industry trends including cyclical trends in the PC and semiconductor industries, the impact of competitive products and pricing alternatives, market acceptance of the Company's new products, and the Company's dependence on third-party developers and publishers. Investors are advised to read the Company's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled "Certain Business Risks," for a fuller discussion of these and other risks and uncertainties.
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