IBM, NVIDIA FORM STRATEGIC ALLIANCE

March 26, 2003

VENDOR SPOTLIGHT

IBM and NVIDIA announced the two companies have formed a multi-year strategic alliance under which IBM will manufacture NVIDIA’s next-generation GeForce graphics processor units (GPUs).

State-of-the-art GPUs, like NVIDIA’s Geforce FX, have become process and manufacturing drivers. To deliver the immense computational power needed to create cinematic images in real-time, NVIDIA’s GPUs require the most sophisticated process technologies.

As part of the agreement, NVIDIA will gain access to IBM’s comprehensive suite of foundry services and leading-edge manufacturing technologies, including power-efficient copper wiring, and a roadmap that leads to 65nm (nanometer; a billionth of a meter) in the next several years, giving the company the necessary tools to advance its state-of-the-art GPUs.

“IBM is bringing a new foundry business model by combining advanced technology coupled with close customer integration,” stated Jen-Hsun Huang, president and CEO at NVIDIA. “Our strategic alliance with IBM gives NVIDIA unprecedented opportunity to bring groundbreaking GPU products to the market. The combination of NVIDIA and IBM’s capabilities will be powerful.”

IBM plans to begin manufacturing the next generation GeForce graphics processor this summer at IBM’s state-of-the-art 300mm plant in East Fishkill, N.Y. The new IBM $2.5 billion chip-making facility combines, for the first time anywhere, IBM chip-making breakthroughs such as copper interconnects, silicon-on-insulator (SOI) transistors and low-k dielectric insulation on 300mm wafers. The new facility began operation last year, and will ramp up in capacity throughout 2003.

“We have a deep customer collaboration with NVIDIA, the kind of support normally reserved for IBM’s Server group and very select large OEM partners,” said Michel Mayer, general manager, IBM Microelectronics Division. “We understand that leading fabless semiconductor companies, like NVIDIA, need to get to market as quick as possible, with the latest technologies, yet need to keep their focus on their customers and products, not on manufacturing.”

Beyond the chip manufacturing technology, IBM also offers an advanced automated management system that not only controls production on the factory floor, but provides a connection for customer and supplier systems and processes, allowing closer integration across the supply chain. IBM’s automated management system provides NVIDIA with opportunities ranging from improved operation to greater efficiency and competitive advantage, while using e-business techniques to adapt to real-time, on-demand influences from the marketplace.

About IBM Microelectronics

IBM Microelectronics is a key contributor to IBM’s role as the world’s premier information technology supplier. IBM Microelectronics develops, manufactures and markets state-of-the-art semiconductor, ASIC and interconnect technologies, products and services. Its superior integrated solutions can be found in many of the world’s best-known electronic brands.

IBM is a recognized innovator in the chip industry, having been first with advances like more power-efficient copper wiring in place of aluminum, faster silicon-on-insulator (SOI) and silicon germanium transistors, and improved low-k dielectric insulation between chip wires. These and other innovations have contributed to IBM’s standing as the number one U.S. patent holder for ten consecutive years. More information about IBM Microelectronics can be found at: http://www.ibm.com/chips.

About NVIDIA

NVIDIA Corporation is a market leader in visual computing technology dedicated to creating products that enhance the interactive experience on consumer and professional computing platforms. Its graphics and communications processors have broad market reach and are incorporated into a wide variety of computing platforms, including consumer digital-media PCs, enterprise PCs, professional workstations, digital content creation systems, notebook PCs, military navigation systems and video game consoles. NVIDIA is headquartered in Santa Clara, California and employs more than 1,500 people worldwide. For more information, visit the Company’s Web site at http://www.nvidia.com.

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