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To: Greg S. who wrote (8231)10/15/1998 2:56:00 AM
From: Eric Howard  Read Replies (1) | Respond to of 16960
 
Greg, I agree for the most part with what you said but since I used to work for that particular "evil empire" in the past I just wanted to mention a few subtle points. The graphics card companies 3dfx, Nvidia, S3, ATI etc design their chips and then get an ASIC house to fab them. In the case of Nvidia and 3dfx I believe the fab is TSMC. TSMC creates a process say .35 micron and a corresponding library. 3dfx then designs their chip using that library and pays the fab to create their chips. Since Intel has their own fabs they do pay less to manufacture but more importantly their process and libraries are designed and optimized exactly for the type of chips they are trying to build. Intel's fabs, process technology and Cad tools are all developed at the same time giving them the ability to milk alot more performance out of a process then an ASIC house will ever be able to get. The original Pentium had 3 million transistors, was done on a .8 micron process and still ran at 66mhz. The next set of Pentiums the 90 and 100mhz version were done on a .6 micron process. The 90-100 mhz parts were sold for more money then the 60 -66 mhz chips but they cost less to make because they had a smaller die size, hence more could fit on a wafer. Likewise the 450 mhz Pentium costs Intel less to make then the 300 mhz version on a per part basis.

So if Intel wanted to take over the graphics market I really do not think they would have much problem. They could buy Nvidia, refab TnT as a .18 micron part and probably get at least a 250 - 300 mhz graphics chip. Thankfully it would not make any business sense since they would be using their fabs to make a graphics chip for a $5 profit instead of producing a CPU they could make $400 on.

The 350, 400 and 450 mhz Pentiums are all done on the same process and come from the same die. Because of process variations, Intel tests them and then bin-splits them into their various ratings. The same thing could be done for graphics chips but it would proably be too confusing for the consumer.

It will not be economically feasible for all these graphics companies to continue to design these chips which are approaching the complexity of a CPU and sell them for $25 - $30 a chip. Unfortunately there are too many graphic chip companies out there right now and there is too much competition. Untill some of these companies go under, none of the graphics card companies are going to make alot of money. Luckily 3dfx seems to be one of the few that has enough cash to weather the shakeout.

Eric