Microsoft Contracts Smaller CPU Technology

Semiconductor manufacturer Chartered Semiconductor has announced an agreement with Microsoft to produce 65 nanometre Silicon-on-Insulator (SOI) technology for the production of Xbox 360 CPUs, with production beginning by the first quarter 2007.

Making the announcement Kay Chai Ang a Senior Vice President at Chartered Semiconductor said, “We are excited to expand our manufacturing relationship with Microsoft and leverage the innovative 65nm SOI technology made available to us through our agreement with IBM…This is both a recognition of Chartered’s 300mm manufacturing excellence and increasing customer confidence in our ability to enable cutting-edge technologies as products transition to 65nm. By working closely with IBM to enable manufacturing compatibility and dual-sourcing capability, our goal is to continue to be a reliable manufacturing source to Microsoft.

What does this mean in plain English? Well it does not mean that much other than a small (more or less unnoticeable) reduction in power consumption and heat of the Xbox 360.