Tegra 2 chip deficit expected?

Nvidia has increased orders for Tegra 2 production that might not be enough provided by the supplier

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NVIDIA has already introduced first mobile phones, LG Optimus X2 and Motorola’s ATRIX 4G, based on Tegra 2 Dual-core chips. The first impression of Tegra 2-based phones shows awesome performance. Tegra 2 chips are also used in production the latest tablets that will be presented (or are being presented as we speak) at CES 2011.

With great success expected from Tegra 2, NVIDIA has increased orders for chip production by 60%. However, TSMC, the company responsible for manufacturing of these chips, can not provide requested supply volumes to all its clients, including NVIDIA. As a results there might me not enough Tegra chips produced to satisfy the market, despite the fact that TSMC ’s 12-inch labs are running at full load.

To solve the problem, TSMC plans to expand its Fab capacity in Q1 2011. It expects monthly volume of output to grow from 240,000 units at the end of 2010 to 312,000 units in 2011. This better be true as Qualcomm, Apple iPad’s chip supplier, has also increase its orders.

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