TSMC making future Xbox chips

Microsoft announces that TSMC will provide semiconductor manufacturing services for its future Xbox products.

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Microsoft today announced that it has reached an agreement with Taiwan Semiconductor Manufacturing Company (TSMC) for TSMC to provide semiconductor manufacturing services for its future Xbox products. The agreement expands upon an existing relationship between the two companies, since ATI Technologies, which is under contract to provide graphics chips for the second-generation Xbox console, has outsourced the manufacturing to TSMC.

"TSMC has consistently demonstrated industry leadership in the development and deployment of highly advanced semiconductor process technologies for high-volume manufacturing," said Todd Holmdahl, Xbox general manager at Microsoft. "It was this solid record of achievement that led us to work directly with TSMC on semiconductors targeted to our future game consoles products."

"Microsoft's future Xbox products and services will require leading-edge semiconductor technologies," added Dr. Rick Tsai, president of TSMC. "This agreement underscores the importance of a partnership between the two companies to identify the best technology platforms for Microsoft's future products. We look forward to a long and productive collaboration with Microsoft."

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