ATI can't meet graphics chip demand

— 5:11 AM on April 23, 2003

DigiTimes is running an interesting story on the failure of both ATI and NVIDIA to meet the market demand for graphics chips. It's been no secret that supplies of the GeForce FX are scarce, but what's particularly interesting is that some of ATI's partners haven't been able to get their hands on as many Radeons as they've wanted.

Apparently, ATI is putting big OEM customers like Dell, IBM, HP, and NEC ahead of third-party board manufacturers like Gigabyte when it doles out graphics chips. That strategy could be keeping the OEMs fed at the expense of enthusiasts, which can't be making third-party board manufacturers happy. There are also concerns that the strategy will hurt ATI's ability to snap up market share, though it's clear that ATI has won back plenty of mind share with its latest Radeons.

Hopefully, ATI's latest 0.13-micron RV350 graphics chip can be produced in sufficient volume to keep everyone happy. The fact that the chip was actually released ahead of schedule and that even initial review samples are overclocking past 500MHz with just the tiny reference cooler suggests yields should be good.

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