Signaling a shift in Microsoft's gaming console makeup, industry-leading chip foundry Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) today announced that Microsoft Corp. has started production of its Xbox 360 graphics-memory subsystem using TSMC's 90-nm embedded DRAM (eDRAM) process.

At the debut of the Xbox 360, Microsoft said it used Japan-based foundry NEC Electronics' 90-nm eDRAM in the gaming system. 

Details on the motivation behind Microsoft's switch from NEC to TSMC have not been provided; however, last year NEC announced that its 90-nm eDRAM would be used in Nintendo's enormously popular Wii gaming console, a direct competitor to the Xbox. According to video came console sales tracking website VG Chartz, the Wii, which retails at $249.99, is fast approaching the $349.99 Xbox in terms of market share. Currently, the site says that the Xbox has sold 10.38 million consoles worldwide, while the Wii has sold 10.19 million.

Microsoft said that it aims to get a stronger hold on the gaming market by using TSMC's technology. "TSMC provides the proven manufacturing and chip implementation services required to build a competitive silicon component in volume,"  Bill Adamec, senior director of semiconductor technology of Microsoft, said in a statement. "The TSMC 90-nm eDRAM process is exactly what we need to further strengthen our position in console gaming and entertainment."

A CMOS logic process with an add-on memory module, eDRAM was notably pushed as the replacement for SRAM memory by IBM Corp. in 2003. TSMC said that its 90-nm eDRAM process features a high-density 80Mbit macro design and  performance to 500MHz. The foundry has been in 90-nm eDRAM production since Q1 2006.

"Microsoft's selection of the TSMC 90nm eDRAM process for the graphics-rich Xbox 360 is an important validation of the capability and maturity of the technology," John Wei, senior director of platform marketing for TSMC, said in a statement.

The Xbox 360 has seen its fair share of problems since its 2005 debut. Microsoft announced an expansion of its global Xbox 360 warranty coverage in response to what the company admitted had been an "unacceptable number" of repair requests for Xbox 360 consoles due to hardware failures. In Microsoft's fiscal 2007 annual financial report released last month, the company's entertainment and devices division, which includes its gaming segment, posted a $1.89 billion loss for the year.

By: DocMemory
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