360 chip manufacturer hints at improved design

One of the contractors responsible for manufacturing CPU's for the Xbox 360 has revealed that it is currently working on a 45-nanometer design, due for release late next year or early in 2009.

A smaller CPU for the Xbox 360 would help reduce manufacturing costs for Microsoft, as well as produce less heat in the console itself.

"We have customers' activity for products in the CPU space that goes into a video game device," said Chartered Semiconductor Manufacturing's CEO Chia Song Hwee, reports PC Advisor.

Chartered Semiconductor Manufacturing has previously produced 90nm and 65nm versions of the Xbox 360 processor.

"As 65nm just started production in the last two quarters, you would expect 45nm to come on stream about 18 months from that timeframe," offered Chia, refering to an expected production timeframe.