"40nm is constrained around the world," according to representatives from Nvidia. "Supply will be constrained for the first half of this year."

Rambus, which designs memory chips, said that an administrative judge for the US International Trade Commission has ruled that graphics chip maker Nvidia has violated three of its patents.

"We could have done a lot more business," said AMD CEO Dirk Meyer. "We are seeing progress both in the delivery of wafers and the underlying yields. But we are constrained today."

When we asked Jensen about Globalfoundries, the big man from Nvidia said that Nvidia likes to work with companies that are customer centric. Since TSMC has 200 customers its kind of hard to be in center of attention, while such a thing might be possible with some alternative fab companies, such as Globalfoundies.

"...key customers who are increasing 40nm tape-outs have already started to evaluate other foundries (UMC) in case yields do not improve soon," said Mehdi Hosseini, an analyst with FBR Capital Markets, in a report.

AMD's first quarter earnings, as expected, show the amount of red ink on the company's balance sheet is growing. Still, there was a slight bump in processor revenues, though unfortunately the company's GPU business is still down.

In a recent interview, Globalfoundries vice president of manufacturing systems and technology Tom Sonderman said that the company plans to make GPUs using 28nm processes in the near future.

Intel CEO Paul Otellini says the company's much talked about GPU project, Larrabee is on track and volume shipments are to start early next year.

Advanced Micro Devices (AMD) announced today that its stockholders overwhelmingly approved a spinoff proposal to create The Foundry Company. The shareholder approval allows AMD to issue common stock and warrants to an affiliate of the Mubadala Development Co., paving the way for AMD and the Advanced Technology Investment Co. of Abu Dhabi to create the new foundry.