Chartered Semiconductor Manufacturing (CSM), a Microsoft contractor that makes CPUs for the Xbox 360, has let on that it’s set to develop a 45-nanometer chip.

The design, which is scheduled for release late 2008 or early 2009, should help Microsoft reduce manufacturing costs and produce less heat in the console than the 90nm and 65nm versions which CSM has supplied.

Chartered Semiconductor Manufacturing has, however, been rather coy in naming names. "We have customers' activity for products in the CPU space that goes into a video game device", said CEO Chia Song Hwee.

"As 65nm just started production in the last two quarters, you would expect 45nm to come on stream about 18 months from that time frame."

>> Link - Official Site/Chartered Semiconductor Manufacturing