MICROSOFT has lined up all the chips it needs to build its upcoming Xbox revision named Jasper.
Jasper is due this summer and features chippery shrunk from 90nm to 65.
IBM is supplying 65nm Xenon microprocessors for the box. Now, according to CENS, TSMC is to build 65nm graphics chips and north-bridge chips for its latest version of XBox360 game consoles Advanced Semiconductor Engineering Inc. (ASE) will do the packaging and Nanya PCB Corp. has a hand in the deal too.
The Chinese wire says Microsoft has booked foundry capacity for some 10,000 300mm wafers at TSMC.
It also says a further Xbox, with integrated GP and CPU and named Valhalla, is set for autumn 2009. µ
L'INQ
CENS
If these ones will FINALLY work correctly, and not (if you are lucky) fail, or unlucky burn your house down..
Since when does IBM make Xeons? Xeons are x86's, the current XBox-360 uses a 3 core by 2X PPC that was supposedly already 65nm shrunk from the 90nm overheating original. IBM was late with decent 65nm which cost them (and AMD) phenomenally. The graphics chip is to be from TSMC, though it is now being from ATI. The story suggests a new one? To combine a graphics chip and cpu raises the question about what cpu, what gpu and what process. Is this about the XBox-360 or something else? Very confusing.
The CPU, named Xenon at Microsoft and "Waternoose" at IBM, is a custom triple-core PowerPC-based design by IBM. 

Yea I got tripped up with the named too when I first read it.
...not Xenu (so Tom Cruise can leave) and neither is it about Xeons. Xenon is the code name for the XBox360 processor, although to be honest I've heard of the graphics subsystem being referred to as Xenon too.

Also, TSMC is a chip foundry, which produces chips to spec for ATI/AMD and the like. They do not do their own designs.

Since both the CPU and the GPU of the XBox360 are custom-built to Microsoft's spec (although based on existing hardware) what's to stop them from combining both on a single die.
XENON, that is the codename for the first 360 design.
Xenon is the code name for the processor IBM supplies MS with for he Xbox360. The whole article is about the 360.

Make sense now?
-> maguro: it is not confusing at all, IBM produces XENONs, not Xeons (Intel's).

The GPU is from ATI (licensed design + some tweaks by MS), but TSMC is producing it on order.

The chips are not supposed to be faster (with consoles, you have guaranteed speeds, all games are written in certain specifications in mind). 

The reason for a respin is lower power consumption (heat) and of course manufacturing costs. 

In my opinion, the shrink will reduce these costs by a 25% for otherwise equal features.

maguro, you've removed an N. It's Xenon, Xbox's code name, not Xeon. It's the PowerPC based proc by IBM. It's x86...not sure why it wouldn't be. 

And to toss another X-word in, the ATI Xenos is dated and ready to be swapped out if they're making other revisions as well. The Xenos is pretty much an x2850 if there was such a thing. 

And TSMC makes ATI's chips...ATI if fabless, so they're the same thing.
pretty sure it said xenon..
Xeon is the x86 CPU series made by Intel. 

Xenon is the 3 core PPC designed by IBM for MS's X360.

Xenos is a GPU designed by ATI/AMD for MS's X360.
Where did you read Xeon? It´w correctly written XENON in the article. That´s the name of the main CPU of the Xbox 360, which is PowerPC based with 3 cores and 2 theads per core alright. Please read carefully next time before you talk nonsense.
The 360 processor is named Xenon, not Xeon. An extra "N" in there makes the difference. IBM makes the CPU, ATI makes the video chip. The CPU is at 65nm but the graphics chip is 90nm. They are moving the graphics chip to 65nm first, then probably next year will go with a unified chip at 65nm that contain the CPU and GPU in one chip.
"IBM is supplying 65nm Xenon microprocessors"

Not entirely sure where the whole Xeon thing came from. Quite common for the firms in the far east to do all the manufacturing - ATI has long had chips built by firms over there. 

I suggest you go back into bed and wake up again tomorrow, hopefully less confused :)
IBM obviously does not make Xeons. But it does make Xenons (the CPU in 360), which is indeed derived from a 3 core PPC. They were originally 90nm and were shrunk to 65nm for the "Falcon" 360 revision.

ATI are a chip design business, and they designed the current 90nm and upcoming 65nm shrink of the Xenos (the GPU in 360).

TSMC are a chip manufacturing business, and they manufacture the current 90nm and upcoming 65nm shrink of the Xenos.

The "Jasper" 360 (65nm GPU and CPU) will replace the "Falcon" 360 (90nm GPU and 65nm CPU) sometime around August.
To maguro_01:

It says Xenon, not Xeon.

Read the article properly before bashing it.

Also, you seem to misunderstand the difference between who designed a chip and who is manufacturing it.
where does it say Xeon?
i can see Xenon which is the name of the cpu in the x360
that 1 n makes all the difference