Commercial Times China has reported that the Vole will get a smaller graphics chip for the Xbox 360. This will certainly make things cooler for the console and it will make the production cheaper at some point. TSMC will make these chips and we hope that ATI can get 65 nanometre right. We already reported that it had problems with its own 65 nm chips here and here.
The paper says that engineering samples of 65 nm Xenos graphics chips have been set for production in May. TSMC will ramp up the 65 nm production and expect that it will take 5 per cent of its all shipments in 2007.
TSMC can also embed DRAM on 65 nanometre chips and there is a possibility that it will make this as well. The 90 nanometre Xenos use embedded DRAM manufactured by NEC.
You can read more here.