ATI graphics chip shortage persists

Sources in Taiwan now expect two more weeks of pain for ATI graphics board makers, as ATI's entire line of graphics chips remains in short supply. I love this explanation from the ATI guy:
“Demand for our chips continues to outpace supply, and this is the main reason for the shortage,” explained Billy Wang, vice president for Asia Pacific and China at ATI.
Indeed, that's exactly the problem, either supply or demand, but we're not saying which. In truth, the source of the shortfall seems to be a flip-chip substrate shortage, not mega-monster unanticipated demand for ATI GPUs. Makers of ATI cards appear to be more affected than NVIDIA's partners in part because ATI has been giving priority to big PC builders like Dell.

Man, if Intel ever decided to go into the graphics chip business, its chip-making capacity would certainly be a major asset. I wonder if ATI and NVIDIA haven't outgrown the fabless model.

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