It was originally planned for Microsoft to receive its 65nm Xbox 360 CPU in the beginning of 2007, but now it appears that the new chips will be delayed to the second half of 2007. Earlier this April, Chartered Semiconductor Manufacturing, the makers of the chip, announced that they will be starting manufacturing of 65nm Silicon-on-Insulator (SOI) technology in Q1 2007. A shrinkage from the current 90nm to 65nm will not only lower production costs, but will also be cooler, resulting in quieter Xbox 360 consoles.

Read (DigiTimes, via YouNewb)