We told you yesterday that TSMC was having issues with its 40nm process, well now it looks like this issue may affect their move to 28nm. At the time I mentioned that if TSMC cannot get 40nm right they run an even greater risk of losing future nVidia and ATi business.

Now it seems that TSMC will be behind GlobalFoundries in the race to 28nm as their previous claim that it would be ready by Q1 2010 has been deemed as unrealistic by an inside source.

If Global Foundries can get things rolling quickly on the 28nm process and be ready for production in Q4 2009 or early Q1 2010 they can grab up a good deal of the business TSMC was hoping to get.

Read more here.

While TSMC might be doing some pilot 28nm production as early as Q1 2010, our sources doubt that it is realistic to see any volume production of 28nm chips in this time frame.

TSMC is still struggling with 40nm and it messed up many plans for both ATI and Nvidia as the company simply cannot pump out enough RV740 chips.