At a company event marking the opening of a new factory wing in Taiwain, Mark Liu, Senior VP of Operations with the company, stated that the chamber matching problems that resulted in low 40nm yields were resolved and successful production was now on par with the well established 65nm chips.
This is good news for both NVIDIA and AMD who rely on TSMC for the production of their next generation graphics cards. AMD/ATI has had a violent struggle meeting demand of their RV870 based video cards due to the low yields of the 40nm chips that the hardware relies on. This resulted in immense frustration for customers and back orders for products such as the HD5870 and HD 5850 that were months long.
While NVIDIA has no high demand 40nm products publicly available at this time, the upcoming GF100 (Fermi) cards will use it as its base.
The newly opened TSMC factory will be focusing on the production of 28nm chips later in the year and the planning stages are in effect for another phase to focus on 22nm technology.