The Taiwanese Semiconductor Manufacturing Company (TSMC) said it had problems with making chips using its 40 nanometer process and yields are not up to scratch.
According to Digitimes, yields have dropped to 40 percent on the process, but TSMC has promised to get the problem fixed during the current quarter.
Customers using TSMC's process are AMD-ATI and Nvidia, said Digitimes, and that may well have an impact on shipping products such as the ATI Radeon 5870 and the Nvidia GT300 series.
TSMC takes designs from fabless customers and makes chips, always maintaining a "Chinese Wall" so that details of one set of semiconductors remain largely unknown to competitors.
The Digitimes story is here.