TSMC might be in big trouble. According to the CEO of Nvidia and CFO, Nvidia has a lot of chips in its warehouses. Nvidia doesn’t have to order many wafers in Q2 as the partners didn’t buy as many chips as the company has hoped for.

Nvidia is stuck with probably more than 50 percent of chips they were hoping to sell in Q4 and to add to this equation, they have more 65nm parts than they hoped for. The good news is that most of the sales is 55nm.

The company confirmed to its investors that it won’t have to order many wafers in Q2 2009, in their own words they said “significantly less wafers” and going forward, some of the inventory will last for the whole Q2 2009 if not even further.

Nvidia didn’t want to confirm or deny 40nm chips but they did indicate that there might be chips based on some smaller manufacturing processes later this year.