According to Cens.com, the first 65nm GPU chip equipped Xbox 360s -- codenamed Jasper, the successor to current Falcon 360s, which incorporate a 65nm CPU but use a larger GPU -- will start showing up in by August of this year. IBM will reportedly manufacture and test the CPU chips, while Taiwan Semiconductor Manufacturing Co. (TSMC) has reportedly been contracted to manufacture and the graphics chips, which will in turn be tested and packaged by Advanced Semiconductor Engineering Inc. (ASE). Nanya will be responsible for supplying flip-chip packaging substrates (don't ask us). Furthermore, CENS reports that industry watchers are betting on TSMC to win contracts to manufacture chips for Japser's successor, Valhalla, which will combine both the CPU and graphics chips into one super chip.
The upshot of all this is that new chips should be arriving this August, making for cooler, quieter 360s everywhere. that's something we can all enjoy, right? Oh, and no, there was no mention of Microsoft cramming Blu-Ray drives into either the Jasper or Valhalla.
Update: Clarified differences between Falcon and Jasper units