September 28, 2006 - Vnunet.com reports today that Chartered Semiconductor of Singapore, manufacturer of the Xbox 360's CPU, will begin manufacturing a new version of the chip in Q1 2007. The current Xbox 360 CPU uses a 90-nanometer manufacturing process, a relatively old-fashioned technique compared to the cutting edge 40nm process soon to be perfected by Intel and AMD.
Chartered Semiconductor will update the 360 CPU to a 65nm process, the current state-of-the-art in chip manufacturing techniques. The new Xbox 360 CPUs will benefit from lower power consumption, and thus much lower operating heat.
In the same article IGN mentions the cost reductions of this move and offers commentary on the possible impact on unit quality/stability. Pretty basic stuff, but nice to see that things are still on track. I wonder what the time frame is for Cell/RSX and Xenos? Likewise memory modules (specifically GDDR3).