During Nvidia's quarterly conference call, execs confirmed that the company could have shipped more products in Q4, but that its business was hampered by supply issues. The company believes it lost $100 to $150 million due to 40nm shortages.

Nvidia confirmed 40nm supply was constrained around the world and that the situation won't change for the better in the first half of the year. TSMC, as Nvidia's primary foundry partner, obviously had something to do with the shortfall, but both Nvidia and ATI underestimated Q4 demand and they were also responsible for the shortages.

However, Nvidia claims TSMC is doing a "fabulous job" and that it has improved its yields. ATI doesn't seem to be complaining about TSMC's yields either, as it has managed to ship well over two million 40nm DirectX 11 cards over the past few months.

More here.