TSMC to manufacture Xbox 360 Graphics chip

James Orry Updated on by

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It has been announced that the Xbox 360’s graphics part, designed by ATI, will be manufactured by Taiwanese Semiconductor Manufacturing (TSMC), who are expected to deliver millions of chips by the end of the year.

Earlier reports had falsely claimed that IBM were to manufacture the graphics part out of its Fishkill plant. IBM will be manufacturing the PowerPC processors, but TSMC, who are a key manufacturing partner for ATI and Nvidia, will produce the Xenos.

Sticking with news about the Xbox 360’s graphics part, The Inquirer are reporting that ATI has now delivered Xenos chips running at the full 500MHz, which have already made their way into the hands of key developers who are still waiting for full speed PowerPC processors. The Inquirer is claiming that the Xenos part could run at speeds higher than the current 500MHz. Increasing the speed, however, would most probably lower yield numbers, thus bumping up manufacturing costs, so Microsoft are likely to have settled for the current speed in order to meet demands and keep costs low.