NVIDIA 2003 Annual Report Download - page 6

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programmable 3D processor that contains more that 60 million transistors. The amount of computing horsepower
is dedicated to one goal—to create stunning, never-before-seen imagery. The MCP is based on two powerful
digital signal processors with 4 billion operations per second dedicated to 3D audio and network processing. The
MCP performs the processing for the broadband networking functions and high-speed peripherals. In addition, it
is the most sophisticated audio processor ever built.
Our products are currently designed into products offered by virtually every leading branded PC OEM,
including Acer Inc., Apple Computer, Inc., Dell Computer Corporation, eMachines Inc., Fujitsu-Siemens
Computers, Gateway Inc., Hewlett Packard Company, IBM, Micron Electronics Inc., NEC Corporation, Packard
Bell NEC Inc., Silicon Graphics Inc., and Sony Corporation, as well as leading contract equipment
manufacturers, or CEMs, including Celestica Hong Kong Ltd., Mitac International Corporation, Micro-Star
International Co. Ltd., and Sanmina SCI Corporation, and leading motherboard and add-in board manufacturers,
including Abit Computer Corporation, ASUSTeK Computer Inc., Canopus Corporation, Gainward Co. Ltd.,
Gigabyte Technology Co. Ltd., Guillemot Corporation, LeadTek Research, Inc. and PNY Technologies.
Our Strategy
We design our GPUs, platform processors and graphics processors to enable PC OEMs, system builders,
motherboard and add-in board manufacturers to build award-winning products by delivering state-of-the-art
interactive 3D graphics capability, while maintaining affordable prices. We believe that by developing
3D graphics solutions that provide superior performance and address the key requirements of the PC market, we
will accelerate the adoption of 3D graphics throughout this market. We combine scalable architectural
technology with mass market economies-of-scale to deliver a complete family of products that spans
workstations to low-cost value PCs.
Our objective is to be the leading supplier of performance GPUs, platform processors and graphics
processors for a broad range of PCs, workstations, laptops, video game consoles, Internet appliances, handhelds
and any future computing device with a display. Our current focus is on the PC, workstation, mobile laptop and
game console product lines, and we plan to expand into other product lines. Our strategy to achieve this objective
includes the following key elements:
Build Award-Winning, Architecturally-Compatible 3D Graphics Product Families for the PC and Digital
Entertainment Platforms. Our strategy is to achieve market share leadership in the PC and digital entertainment
platforms by providing award-winning performance at every price point. By developing 3D graphics solutions
that provide superior performance and address the key requirements of these platforms, we believe that we will
accelerate the adoption of 3D graphics. As part of our strategy, we have closely aligned our product development
with Direct3D and OpenGL, which we believe maximizes third-party software support.
Target Leading OEMs and System Builders. Our strategy is to enable our leading OEM and major system
builder customers to differentiate their products in a highly competitive marketplace by using our 3D graphics
processors. We believe that design wins with these industry leaders provide market validation of our products,
increase brand awareness and enhance our ability to penetrate additional leading customer accounts. In addition,
we believe that close relationships with OEMs will allow us to better anticipate and address customer needs with
future generations of our products. Our products are currently designed into products offered by virtually every
leading branded PC OEM, including Acer, Apple, Dell, eMachines, Fujitsu-Siemens, Gateway, HP,
IBM, micronpc.com, NEC, Packard Bell NEC, SGI and Sony.
Sustain Technology and Roadmap Leadership in 3D Graphics. We are focused on leveraging our
advanced engineering capabilities to accelerate the quality and performance of 3D graphics in PCs. A
fundamental aspect of our strategy is to actively recruit the best 3D graphics engineers in the industry, and we
believe that we have assembled an exceptionally experienced and talented engineering team. Our research and
development strategy is to focus on concurrently developing multiple generations of graphics processors using
independent design teams. As we have in the past, we intend to leverage this strategy to achieve new levels of
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