Nvidia's GPU Material Defect Cost $475.9 Million

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Nvidia weak die/packaging material gaffe was one of the worst and most damaging for the GPU company. Certain versions of previous generation MCP and GPU (G84, G86) products shipped before July 2008, especially in notebooks, would fail due to the bad material, which led to a ripple effect of in and out of warranty claims.

Years later, the charges against Nvidia are still taking their toll. In the most recent quarter, Nvidia reported a charge of $193.9 million which includes additional remediation costs over the GPU error.

With this $193.9 million on top of the $282 million of net charges from previous statements, the total net charge over the GPU material flaw totals $475.9 million.

Nvidia may have reason to be optimistic, however, as it believes that it may be finally done paying for its mistake. Nvidia CEO Jen-Hsun Huang believes that the $193.9 million could be the enough to put the problem behind the company.

"It's our best estimate," he said, talking to Cnet. "With much, much more understanding and more data than we had two years ago or a year ago. And we've had the opportunity to work with every single PC (maker) out there. So we think it's near the end."

[Sideous Prime]

good news!

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good news!

maybe..
Nvidia Announces $141 Million Net Loss in Q2FY11

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