Software giant asks local suppliers to double output of key chips

Microsoft is preparing to double the shipments of its Xbox 360 games console to one million a month, chip makers in Taiwan have confirmed.

The software giant has asked local suppliers to double their output of several key chips for the console during the second quarter of the year, according to the Commercial Times, citing unnamed industry sources in Taiwan.

As a result, Microsoft will be able to satisfy demand of up to three million units in the three months to June, compared with 1.5 million in the first quarter, the paper reported.

Local suppliers of Xbox 360 chips include Taiwan Semiconductor Manufacturing Corp, which manufactures the ATI graphics chip used in the console, and Silicon Integrated Systems, which makes the south bridge chipset.

The release of Sony's rival PlayStation 3 console was recently put back several months to November, giving Microsoft more time to establish a hold on the market.

As previously reported, Microsoft decided last month to add a third lead contractor to the two that already build Xbox 360 consoles.

The chips from the Taiwanese semiconductor manufacturers are delivered to these contractors for assembly into the console's main circuit board.