Taiwan Semiconductor Manufacturing Company (TSMC) announced today that Microsoft has started production of the Xbox 360 graphics-memory subsystem using the TSMC 90nm embedded DRAM process. This process features a high-density macro design and performance of up to 500MHz.

"TSMC provides the proven manufacturing and chip implementation services required to build a competitive silicon component in volume," said Bill Adamec, senior director of Semiconductor Technology of Microsoft. "The TSMC 90nm eDRAM process is exactly what we need to further strengthen our position in console gaming and entertainment."

The TSMC 90nm embedded DRAM is a CMOS logic process with an add-on memory module that eliminated I/O power consumed in external DRAM devices. No word from Microsoft on if this new component for the Xbox 360 is going to increase performance or reduce heat output. Many gamers really don’t care what happens to the Xbox 360 until the unit ships with a cooler, faster processor.