In a filing with the Securities and Exchange Commission, graphics developer Nvidia has disclosed a problem in a “significant quantity” of previous generation MCP and GPU products that shipped on notebook computer systems from a variety of computer manufacturers. Nvidia claims it has not uncovered the heart of the problem—saying only that they have been failing at “higher than normal rates”—but laid possible blame on weak set of materials used to bind up the GPUs with other components, as well as the thermal design of some notebooks which may overheat the graphics chips.
Nvidia has not revealed which specific graphics controllers are affected. The company says currently-shipping graphics controllers for notebook systems aren’t impacted, but Nvidia continues to investigate its product lines and didn’t rule out the possibility additional defects will be uncovered.
Nvidia has developed a new set of drivers for users with potentially defective systems that fires up notebook’s internal fans to reduce “thermal stress” on the chips, and is recommending customers configure their notebooks to aggressively cool their systems—although, for many, that will be significantly decreased battery life. Customers will need to turn to their computer makers for support and new drivers, rather than to Nvidia itself.
The cost of repairing and replacing impacted products is estimated to be between $150 and $200 million. Nvidia says it is talking with its suppliers about covering the costs the company has incurred (and may incur in the future) resulting from the weak materials set; the company is also looking to tap into its insurance coverage.
The company also lowered its revenue forecast for the second quarter of 2008 due to pricing pressures and product delays; the company now expects to earn between $875 and $950 million in the second quarter.
