Xbox 2 GPU nears completion

Citing market sources, Digitimes daily IT news is reporting that ATi Technologies will be sending out the first batch of new GPUs (codenamed R500) for the Xbox 2 during the first quarter of 2005.

Taiwan Semiconductor Manufacturing Company (TSMC) is building the chips using a 90-nanometer process. The GPU has been estimated to offer performance on par with ATi’s next-generation high-end graphics chip, the R520.

Additionally, although ATi and Microsoft are collaborating on the chip’s development, the software vendor will be the one placing orders with TSMC, according to the Digitimes report. Microsoft will pay ATi royalties based on the number of chips manufactured and shipped.