Apple partner IBM will manufacture NVidia's next generation GeForce graphics processors in a deal worth $100 million.

Work on the new chips will begin in mid-2003. The company will use its 0.13 micron process technology to produce 300 millimetre wafers. This is the most sophisticated level of production currently used in mass quantities by other chipmakers such as Intel, and Taiwanese contractors such as Taiwan Semiconductor Manufacturing Co. (TSMC), which currently manufactures graphics chips for NVidia.

TSMC claims it will remain the primary manufacturer for the new chips.