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Nvidia gives up on its chipset business

Daniel Fleshbourne   on 01 August 2008 - 12:32 · 50 comments & 18403 views

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According to DigiTimes Nvidia has given in to its rivals and is closing it motherboard business. Mole’s from inside Taiwan top motherboard makers said.

“Nvidia called a meeting earlier this week with its motherboard partners to gauge support for it continuing to develop chipsets in the future. The motherboard makers' response? Silence”.

It is expected that Nvidia will now concentrate on its GPU business and will move its resources from its motherboard development team to aid its GPU team.

Its assumed that Nvidia will be under pressure in the GPU field now due to ATI having crossfire support, while Nvidia now has to try and licence its own SLI technology.

With this impending withdrawal from the Motherboard market also casts doubt on the recent whispers about Nvidia developing a chipset for Apple’s new Macbook Pro.

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#1 Magallanes on 01 Aug 2008 - 12:37
U_U
i liked the nforce chipset.
(1 reply) #2 Daniel on 01 Aug 2008 - 12:44
first they have to drop the prices of GTX280/260, then the GPU cover up, now they are leaving the chipset business?

And they said AMD is having problems...
#2.1 EduardValencia on 01 Aug 2008 - 12:47
Nahhh they are focusing on the most profitable business core. U.U
(2 replies) #3 ZombieFly on 01 Aug 2008 - 12:50
oh god. does this mean back to VIA for amd users? NOOOOOOOOOOOOOOOOOOooooooooooooooo..............!
#3.1 necrosis on 01 Aug 2008 - 13:03
O Jesus God I hope not. VIA can go to hell.

Please nVidia say it isn't so.
#3.2 RAID 0 on 01 Aug 2008 - 18:01
I thought AMD had their own chipset?
#4 Max™ on 01 Aug 2008 - 12:52
I would've thought that nVidia were doing okay with their chipset business.
(2 replies) #5 PrEzi on 01 Aug 2008 - 13:03
Their chipset were flawed, produced too much heat compared to the other manufacturer's chipsets,
theirs drivers were all but good, and support for older (Nforce 1/2/3 & Vista anyone ?) chipsets was non-existing.

R.I.P. NV MoBo's.
#5.1 nmesisca on 01 Aug 2008 - 13:52
(PrEzi said @ #5)
Their chipset were flawed, produced too much heat compared to the other manufacturer's chipsets,
theirs drivers were all but good, and support for older (Nforce 1/2/3 & Vista anyone ?) chipsets was non-existing.

R.I.P. NV MoBo's.


+1

.. and I dont mind VIA chipsets to be honest I think they have a lot more to offer now than they had in the past.
And yeah AMD makes good chipsets too.

nVidias Nforce chipset issues have managed to **** off a lot of people (including myself) and to be honest I wouldnt buy anything branded by nVidia, though I was sort of a fanboy until last year.
I have switched to ATI and I think they finally got their act together since the AMD is the boss. Of couse this has bled AMD to almost death but in retrospective, now its the only business unit that is making them some good cash.
I like ATI releasing monthly driver updates, and their drivers suck definitely less than nVidia (dll crash in Vista anyone).
#5.2 +shinji257 on 02 Aug 2008 - 00:19
(nmesisca said @ #5.1)
(PrEzi said @ #5)
Their chipset were flawed, produced too much heat compared to the other manufacturer's chipsets,
theirs drivers were all but good, and support for older (Nforce 1/2/3 & Vista anyone ?) chipsets was non-existing.

R.I.P. NV MoBo's.


+1

.. and I dont mind VIA chipsets to be honest I think they have a lot more to offer now than they had in the past.
And yeah AMD makes good chipsets too.

nVidias Nforce chipset issues have managed to **** off a lot of people (including myself) and to be honest I wouldnt buy anything branded by nVidia, though I was sort of a fanboy until last year.
I have switched to ATI and I think they finally got their act together since the AMD is the boss. Of couse this has bled AMD to almost death but in retrospective, now its the only business unit that is making them some good cash.
I like ATI releasing monthly driver updates, and their drivers suck definitely less than nVidia (dll crash in Vista anyone).


I have to question the quality of ATI's drivers however. Myself and a friend played the same game. The game works flawlessly on my Nvidia card however my friends ATI crossfire setup had issues with rendering certain parts of the game. On another game he was plagued with graphical glitches while my setup had none at all.
(2 replies) #6 Master Shake on 01 Aug 2008 - 13:23
Wow, I never would have thought this would happen... who else makes AMD chipsets but VIA? Oh hells no...
#6.1 mscrivo on 01 Aug 2008 - 13:35
(Master Shake said @ #6)
Wow, I never would have thought this would happen... who else makes AMD chipsets but VIA? Oh hells no...


AMD themselves make some very good chipsets.
#6.2 HalcyonX12 on 01 Aug 2008 - 22:28
But they're very expensive, and they stop producing them once 3rd party boards become common.
#7 +Smigit on 01 Aug 2008 - 13:24
Good. They can no longer afford to keep SLI to themselves. Honestly I think they were kidding themselves by doing so given the small market there is for multi gpu solutions and the fact AMD is alot more competitive than some people give them credit. If Intel wasn't going to give them a Nehalem license as rumoured after NVidia not wanting to share SLI then NVidia was always going to come off second best.
(2 replies) #8 ir0nw0lf on 01 Aug 2008 - 13:54
Ugh, this bites indeed. Most of our system builds for entry level AMD boxes use some form of Geforce/nForce chipset mobo.
#8.1 Daniel on 01 Aug 2008 - 14:13
(ir0nw0lf said @ #
Ugh, this bites indeed. Most of our system builds for entry level AMD boxes use some form of Geforce/nForce chipset mobo.


780G insted then?
#8.2 nmesisca on 01 Aug 2008 - 14:19
(Daniel said @ #8.1)
(ir0nw0lf said @ #
Ugh, this bites indeed. Most of our system builds for entry level AMD boxes use some form of Geforce/nForce chipset mobo.


780G insted then?



+1

thats a fantastic chipset. I use it in my HTPC and its amazing (and cheap). GX is better with sideband memory as well..
#9 El-Diablo on 01 Aug 2008 - 14:14
I"m fairly saddened by this. I love and have loved all my Nvidia chipsets to date.
#10 TruckWEB on 01 Aug 2008 - 14:18
So much for Apple going with nVidia for their next chipset....
(2 replies) #11 Angel Blue01 on 01 Aug 2008 - 14:28
Oh no, who's going to make chipsets for Intel-based boards? Not VIA!
#11.1 ahhell on 01 Aug 2008 - 14:50
Uh....how about...wait for it......INTEL?!?!
#11.2 RAID 0 on 01 Aug 2008 - 18:03
(ahhell said @ #11.1)
Uh....how about...wait for it......INTEL?!?!


P35/45 FTW!
#12 Nehemoth on 01 Aug 2008 - 14:51
I doubt this so much, that the only way that I will believe it is just if Nvidia send a Press notice or something.

And even if that happens in some years they're will be back again to business.
(1 reply) #13 Skynetfuture on 01 Aug 2008 - 15:17
lol about time NV

what next NV declaring bankruptcy January next year >,< !

first there GT200 cards underperforming and got huge price cut

then a huge crisis with mobile gfx

and now they are closing the chipset business
#13.1 Esvandiary on 01 Aug 2008 - 16:49
(Skynetfuture said @ #13)
what next NV declaring bankruptcy January next year >,< !

You mean just like how AMD/ATI declared bankruptcy when they were in trouble after Core 2 and the NV 8-series?
#14 Burst404 on 01 Aug 2008 - 16:06
Well, poop.
#15 Ender2070 on 01 Aug 2008 - 16:18
AWESOME!!!! I hate NVIDIA CHIPSETS

So many returns due to incompatibilities and cheap boards made on video card pcb's!
#16 Nose Nuggets on 01 Aug 2008 - 16:22
the margins probably aren't NEARLY as good as in the graphics department. good buisiness move.
(2 replies) #17 vetGerry on 01 Aug 2008 - 16:25
Well, I didn't see this coming...
#17.1 Schmoe on 01 Aug 2008 - 16:47
(Gerry said @ #1)
Well, I didn't see this coming...

Think about it... On the Intel side, Intel does *very* well making chipsets. I still think they've got the best chipsets out there. Perhaps they aren't always on top for performance, but they are rock solid.

On the AMD side... Why would Nvidia continue to support it? Now that ATI has gotten in bed with AMD, essentially Nvidia's chipset support props up their biggest competitor. Dropping chipsets would probably weaken AMD's overall position, and thus reduce their cashflow and help Nvidia compete better on the video side.
#17.2 Raa on 02 Aug 2008 - 01:57
(Schmoe said @ #17.1)
(Gerry said @ #1)
Well, I didn't see this coming...

Perhaps they aren't always on top for performance, but they are rock solid.


Actually, they are. I did a lot of reviews when buying my last 2 motherboards, and Intel kept coming away as a winner. So Intel it's (always) been for me
#18 Skynetfuture on 01 Aug 2008 - 16:54
then there next move should be to release there Forceware 180.xx

change log :

1 - no longer have nvdia DRM embded ! (there suprise big bang II !

2 physicX support ..... etc

ahh the driver
(2 replies) #19 +Kirkburn on 01 Aug 2008 - 17:05
Wow, one negative story and everyone starts gnashing and wailing, and predicting the end of the world.

Companies of nVidia's size do not fail just because of a few setbacks. Their main GPU competition is ATI, and neither of them can blow the other out of the water - it will continue as a war of attrition, as it has for many years.
#19.1 Skynetfuture on 01 Aug 2008 - 17:36
actually the fualty graphic chips (g84 & g86) could possibility drive them to bankruptcy if have noticed the scale of the disaster !
#19.2 +Kirkburn on 01 Aug 2008 - 17:58
(Skynetfuture said @ #19.1)
actually the fualty graphic chips (g84 & g86) could possibility drive them to bankruptcy if have noticed the scale of the disaster !

Really? Bankruptcy? Companies aren't quite such fragile beasts, y'know.

Besides, the event is barely two (uncited) sentences on Wikipedia. I'd expect something actually company threatening to have had more by now.
#20 Mike Frett on 01 Aug 2008 - 17:40
AMD Makes fantastic Chipsets. I just put together a Foxconn A78AX-S with an AMD 770 chipset. Rock solid stability.

I'm very happy with it. I always go for either Intel, or AMD's own Chipsets. I find the best stability with the chip makers own chips.
#21 Xenomorph on 01 Aug 2008 - 18:47
I see this as good.

Old NVidia chipsets got POOR support.
I have an NForce3 motherboard that hasn't had updated drivers in years.

NVidia dropping out points out a few things:
- VIA has come a long way since the 686B days. They make decent stuff.
- SLI may end up on other chipsets. As far as I know, Crossfire can be on anything, while SLI was limited to NVidia only.

(1 reply) #22 Phemo on 01 Aug 2008 - 19:01
According to HardOCP, nVidia have confirmed themselves that they are NOT leaving the chipset business:

http://www.hardocp.com/news.html?news=MzQw...HVzaWFzdCwsLDE=
#22.1 theyarecomingforyou on 02 Aug 2008 - 00:20
+1
(1 reply) #23 gnuman on 01 Aug 2008 - 20:08
It would not make sense for them to leave the chipset business as they acquired ULi which was making great chipsets that rivaled nVidia and ATI (although without SLi support)

It is a big business for nVidia to have the chipset market as if they were to drop it completely, who then would make SLI capable motherboards when they bought up their competition? You think Via would be interested? No way that would happen and maybe ULi would have been a better choice, but then again, there is always money to be made from the enthusiast market.
#23.1 JaLooNz on 02 Aug 2008 - 02:10
+1

Actually there have been saying that ULI's chipsets are more stable than nForce. Most notably, they do not suffer from the data corruption issues which is very serious to a computer's stability.
#24 HawkMan on 01 Aug 2008 - 22:24
Wel this practically only akes Intel Chipsets to only viable chipsets, again.

Nvidia's entry to the chipset market was the first time AD users finally got a stable chipset. Now we're left with just VIA, ALI and the other crap again. Instead of a chipset maker that could actually rival Intel in quality.
#25 Airlink on 01 Aug 2008 - 23:06
I don't believe it. Maybey they're dropping out of a particular segment, but not across the board. Definitely not the high-end gamer segment.

This is rumor reported as fact, people: Take it with a grain of salt.
#26 James Riske on 02 Aug 2008 - 01:03
Good riddance to nvidia chipsets, they were always god-awful.

I have the 650i sli currently in my dell 630i, what a pos, I've had nforce 2/3/4 in the past, always problems, horrible drivers, poor performance.

The best chipsets I have used came from intel, funny I was just on newegg a few minutes ago deciding on a new board to fit in my dell and already sworn not to get anything nvidia based then I seen this news report lmao.
#27 Circaflex on 02 Aug 2008 - 02:03
nvidia confirmed this was not true.

by Cyril Kowaliski — 12:02 PM on August 1, 2008

If you visit DigiTimes right now, you'll see a catchy headline at the top of the page: "Nvidia to quit chipset business." Citing sources at motherboard firms, the Taiwanese site alleges that Nvidia will stop offering chipsets and re-assign its MCP team to the GPU business. Regarding the motive for the change, the site explains, "Nvidia called a meeting earlier this week with its motherboard partners to gauge support for it continuing to develop chipsets in the future. . . . The motherboard makers' response? Silence."

Puzzled, we asked Nvidia Platform Products PR chief Bryan Del Rizzo to weigh in. Del Rizzo's response came swiftly and left little open for interpretation:

1. The story on Digitimes is completely groundless. We have no intention of getting out of the chipset business.
2. In fact, our MCP business is as strong as it ever has been for both AMD and Intel platforms:
1. Mercury Research has reported that the NVIDIA market share of AMD platforms in Q2 08 was 60%. We have been steady in this range for over two years.
2. SLI is still the preferred multi-GPU platform thanks to its stellar scaling, game compatibility and driver stability.
3. nForce 790i SLI is the recommended choice by editors worldwide due to its compelling combination of memory performance, overclocking, and support for SLI. . . .
3. We're looking forward to bring new and very exciting MCP products to the market for both AMD and Intel platforms.

To add to Nvidia's statement, we remember Nvidia CEO Jen-Hsun Huang stating in April that customers will find value in Nvidia "motherboard GPUs" once Intel releases Nehalem processors with built-in graphics cores. According to Huang, lengthy processor release cycles will leave plenty of room for quicker and more feature-rich integrated graphics chipsets.
#28 chemaz101 on 02 Aug 2008 - 06:37
I would be suprised if it were true, especially since they've now started bringing out hybrid sli, wouldnt make sense to bring someting new and then just leave :s
#29 PGHammer on 02 Aug 2008 - 06:44
I so saw this coming.

Why? Motherboard chipsets are so not their core business, and their core business (GPUs) are under heavy, if not concerted, assault, not just by AMD (discrete and mobile graphics) but, in the future, by Intel (with Larabee in the future with discrete graphics, and today, with IGP desktop and mobile graphics). nV needs to retrench to save their core business from the combined assault of Intel and a resurgent (can anyone say HD4000?) AMD. First GTX280/260 turned out to be both horrendously expensive, and not much faster than their current 9800GTX (while using more electricity), then along comes a resurgent AMD with HD4000 (not just HD4850, which was bad enough, but HD4870 and now HD4870 X2, which are actually worse), which turn out not only to be faster, but are seriously cheaper (not just than the original 9800GTX, but the die-shrunk GTX+ as well). Speaking of the GTX+, the other fly in the nV potion is that in order to use two of them, you need to rely on the still problematical nForce SLI chipsets (which are still havinig significant issues with those Quality Intel Quads, whereas the identical AMD solution not only does not require AMD CPUs, it doesn't require AMD chipsets, either; instead, we can use chipsets from the King of Chipsets, Intel itself, thanks to that chipset license swap that AMD and Intel did a few years back).

The one-two punch from both Intel and a resurgent AMD is forcing a re-trench.

#30 ajua on 02 Aug 2008 - 08:56
Maybe they are not dropping chipsets, but they are in a though battle with Intel and AMD in this market. When Intel launches Nehalem, they will be more pressured to hand over the SLI license in order to sell more GPU's, which will hurt their chipset business unit even more.

In the mobile graphics they are trailing in 3rd place behind AMD and Intel, in that order. Intel's Larabee will bring more heat to AMD and Nvidia.

They should focus more on improving this unit and thinking how to counter-attack AMD in the High-End market.
#31 Panarchy on 02 Aug 2008 - 11:52
NVidia was good fun!
#32 David3k on 03 Aug 2008 - 15:59
This news post is misleading, as this only a conclusion drawn from rumors, not a certainty.

nvidia has responded stating that their chipset buisness is one of their best assests and it's doing better than ok.

A response from NVIDIA's Bryan del Rizzo:

1. The story on Digitimes is completely groundless. We have no intention of getting out of the chipset business.

2. In fact, our MCP business is as strong as it ever has been for both AMD and Intel platforms:
a. Mercury Research has reported that the NVIDIA market share of AMD platforms in Q2 08 was 60%. We have been steady in this range for over two years.
b. SLI is still the preferred multi-GPU platform thanks to its stellar scaling, game compatibility and driver stability.
c. nForce 790i SLI is the recommended choice by editors worldwide due to its compelling combination of memory performance, overclocking, and support for SLI. . . .

3. We're looking forward to bring new and very exciting MCP products to the market for both AMD and Intel platforms.

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