Taiwan's TSMC to Make Chips for Microsoft Xbox
Date: Tuesday, April 06 @ 18:46:19 UTC
Topic: Xbox Development
TSMC now has a contract to make graphics chips for the second generation of Xbox game consoles through Canada's ATI Technologies Inc (ATY.TO: Quote, Profile, Research) , the world's second-largest graphics chip maker.
Microsoft signed that deal with ATI, which outsourced manufacturing to TSMC. The next generation of Xbox is set for release late in 2005.
The latest agreement was signed directly by Microsoft and the Taiwan company, said TSMC spokesman Tzeng Jinn-haw. He declined to give a dollar value for the contract.
The announcement came after the close of Taiwan trade on Tuesday. The Taipei-traded shares of TSMC, which is one-fifth-owned by the Netherlands' Philips Electronics N.V. (PHG.AS: Quote, Profile, Research) ended flat at T$62.0 each.
Last month, Microsoft lowered the price of the Xbox to $149.99 from $179.99, a move seen as a change in strategy. Microsoft previously cut the Xbox price only after similar cuts from industry leader Sony Corp (6758.T: Quote, Profile, Research) on the PlayStation 2.
ATI focuses on designing chips used to compute complex three-dimensional graphics for computer games, but outsources the actual microchip production to companies like TSMC. (US$=T$33.0)
News Source: reuters.com
|
|