Nvidia Stops Next Gen Chipset Development

Nvidia has put development of chip sets for next-generation Intel processors on hold, even as it continues to manufacturing chip sets for older Intel processors. The two companies are involved in a legal dispute and until it is resolved, the next generation chipsets are on hold. Nvidia released a statement Oct. 7 stating that the company has decided to end development of chip sets for upcoming Intel processors which have a new form of communications bus called Direct Media Interface (DMI).

Newer Intel CPUs, beginning with ones based on Nehalem, have the front side bus integrated onto the silicon. In a lawsuit brought against Nvidia by Intel, Intel maintains that Nvidia has no rights to develop chip sets that work with the DMI communications bus found on newer Intel chips, while Nvidia claims it does have the right. We firmly believe that this market has a long healthy life ahead. alleges Nvidia in a statement. But because of Intels improper claims to customers and the market that we arent licensed to the new DMI bus and its unfair business tactics, it is effectively impossible for us to market chip sets for future CPUs. So, until we resolve this matter in court next year, well postpone further chipset investments for Intel DMI CPUs.

The legal dispute came to light in February of this year, when Intel filed a lawsuit asking a judge to rule on whether Nvidia had the right to develop chip sets for Intel processors based on Nehalem. The two chipmakers had inked an agreement in 2004 which permitted Nvidia to make compatible chips sets for Intel processors. I hope the judge has a good background in semiconductor technology and chipset architecture. The winner in this situation may be AMD, which makes its own graphics chipsets and faces no such hurdles in developing a next generation chip that will keep gamers happy with cutting edge graphics capability.