Taiwan Semiconductor Manufacturing Co., the world's top contract chip maker, said on Thursday Microsoft Corp. has started using TSMC's 90-nanometre-embedded-DRAM process technology for the production of the Xbox 360 game console.

Microsoft's selection of the TSMC 90nm eDRAM process for the graphics-rich Xbox 360 is an important validation of the capability and maturity of the technology, said John Wei, senior director of platform marketing, advanced technology division of TSMC, in a statement on its Web site.

TSMC has been producing 90 nanometre embedded dynamic random access memory (DRAM) since the first quarter of 2006, it said.

TSMC shares fell 2.3 percent in midday trading on Thursday, outperforming the benchmark TAIEX index, which dropped 3.90 percent by 0237 GMT.