TSMC plans to begin producing the Valhalla chip, which will be the foundation of the mid-cycle refresh of the Xbox 360, thus called 'Xbox 2.5' or simply 'Xbox 540' (360+180), in fall of 2009. We learned that this new chip is apparently much more than a die-shrink and end up as a system-on-a-chip design. This change is likely to enable to redesign the Xbox 360 casing and go towards a slim-design, much like what Sony did with the Gen1 and Gen2 PS2. TG Daily believes that TSMC will use a 45 nm process for this Multi-Chip-Module package (CPU+GPU+eDRAM).
