ATI Technologies is expected to roll out a new GPU, codenamed R500, for the Xbox 2 in the first quarter of next year, according to market sources. The R500 will be built using a 90nm process at Taiwan Semiconductor Manufacturing Company (TSMC) and will deliver performance similar to ATI's next-generation high-end graphics chip, the R520, the sources said.
ATI is cooperating with Microsoft to develop the chip, but the software vendor will be responsible for placing orders with TSMC. ATI will receive royalties from Microsoft based on the number of chips produced. In related news, the sources said that ATI has completed the tape-out of its R480 chip, which is due to launch in the fourth quarter. The R480 is being manufactured at TSMC, using a 0.11-micron process.