Microsoft, TSMC to collaborate for Xbox chips

April 6, 2004 – Microsoft Corp. has chosen TSMC to provide semiconductor-manufacturing services for its Xbox gaming system, with Microsoft given “direct, collaborative access” to TSMC’s advanced semiconductor process technologies.

The deal underscores Microsoft’s commitment to be involved in the chipmaking process for its gaming system. Last fall reports surfaced that it was working with IBM to develop a dual-core version of either IBM’s Power4 or Power5 processors for the next edition of Xbox, replacing Intel’s Pentium III chips.

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