A short but encouraging news article at X-bit labs, TSMC’s Problems with 40nm Process Technology Largely Over, reports that TSMC has solved its widely-rumored yield problems with its leading-edge 40nm process. Hallelujah! This would be great news for TSMC, their customers, their customers' customers, ...
An interesting side note is the claim that at present only ATI, graphics business unit of Advanced Micro Devices, Altera and NVIDIA Corp. use TSMC 40nm process technology. Really, only three production users of 40nm? Apparently the design pipeline is getting stretched out over many generations, including 65nm on up to 130nm. Ah, I miss the good old days of 130nm design.
(Tip o' the hat to Daniel Nenni for the "tweet" tip.)