Nvidia Blackwell production set to rally in Q4 despite reports of “design flaw” delays
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Nvidia has admitted that its highly anticipated Blackwell-based products are experiencing manufacturing hurdles, reportedly delayed due to design flaws, leading to lower-than-expected yields. To address this issue, the company has had to make adjustments to the design of its B200 processor. Despite these challenges, Nvidia remains optimistic about the future of Blackwell.
The company has confirmed that production is set to ramp up significantly in the fourth quarter of 2025, with the expectation of shipping Blackwell GPUs valued at several billion dollars by the end of the year. This will likely mark the introduction of the upcoming RTX 50 series.
Improving production yield for Blackwell
In a statement, referenced by Tom’s Hardware, Nvidia explained that a modification to the Blackwell GPU mask has been implemented to improve production yield. This change is expected to contribute to a successful ramp-up of Blackwell production, which is anticipated to continue well into fiscal 2026. While Nvidia has been providing samples of Blackwell GPUs to its customers since the second quarter, the company acknowledged that the need to produce “low-yielding Blackwell material” to meet demand had a negative impact on its gross margins.
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Investors reassured in Nvidia earnings report
Nvidia’s CEO, Jensen Huang, reassured investors during the recent earnings call that the necessary design changes have been implemented for both the B100 and B200 GPUs, and the company is on track for mass production in the fourth quarter. The Blackwell GPUs are the first to utilize TSMC’s CoWoS-L packaging technology, which enables high-speed data transfer between chiplets. However, challenges related to the alignment of chiplets and the coefficient of thermal expansion (CTE) mismatch between components have led to warping and system failures.
The production challenges already faced by Nvidia’s Blackwell GPUs could have significant implications for gamers in the coming months. While the company is working to address these issues and ramp up production, the initial delays and potential supply constraints may lead to higher prices or limited availability for gaming hardware equipped with Blackwell GPUs. This could affect the release dates of new gaming consoles or high-end gaming PCs, and it might also impact the availability of certain GPUs for individual purchase.
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