Reports suggest that the Taiwan Semiconductor Manufacturing Company (TSMC) could receive manufacturing contracts by AMD, and long-time customer NVIDIA, for graphics processors based on the newest 40nm silicon fabrication process. The two giants in the visual computing industry, are expected to skip the 45nm process altogether. This is seen as a move to cut down manufacturing costs, and use the most feasible manufacturing technologies. Miniaturizing circuitry at that scale would allow them to build even more complex silicon machinery, with much higher transistor counts, while maintaining size constraints.

AMD on its part would have to use the services of TSMC, since the foundry company's fab in Dresden is only capable of 45nm SOI fabrication process, and that it would take as long as 2010, by the time the expected 32nm process is ready at the New York fab. The next star-entry for AMD would be the ATI RV870, and as for NVIDIA, it would continue development of monolithic high-end GPUs with GT216, a successor to the G200 GPU. Meanwhile, the companies could continue aggressive competition, with projections of up to 20% price-cuts by Christmas 2008 shopping season. Their 40nm GPU designs could be ready by the end of this year, and 40nm GPUs could be supplied by June, 2009.