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Tue, Oct 16, 2001 - Page 21 News List

Transmeta announces new space-saving chip

BLOOMBERG , SAN JOSE, CALIFORNIA

Transmeta Corp, a start-up semiconductor maker that competes with chip-making giant Intel Corp, said it's developing a chip that combines several devices into one and uses one-third the space of current products.

The Crusoe TM6000 integrates into one chip the graphics processor and other pieces that help communicate with the rest of a computer. That's done with three or four devices now.

"We're going to make it really easy to build very small systems," said Vice Chairman David Ditzel. He expects to start selling 1GHz models in the second half of next year.

Transmeta is facing rough times. Since first selling shares to the public in November at US$21 each, the stock has plunged 91 percent to US$1.93.

The company built its business with Japanese computer makers like NEC Corp and Toshiba Corp and has been hurt by an economic slowdown and new, low-power products from rivals such as Intel.

Transmeta has said third-quarter sales will be less than half the June period's US$10.5 million.

The company was to release technical details of the TM6000 at the Microprocessor Forum in San Jose yesterday.

Crusoe is used in laptops and thin servers that run Web sites because it helps batteries last longer.

The chip uses software to perform some functions, requiring less power and producing less heat. That allows for sleeker computers.

Ditzel is pitching the TM6000 for new applications like set-top boxes that connect to the Internet, DVD and multimedia systems and computer-networking routers.

Santa Clara, California-based Transmeta will also show tests that Ditzel says prove that Intel's lowest-power chip uses twice as much energy as an older Crusoe. The TM6000 uses 44 percent less power than those 5000-series Crusoes, he said.

"They have caught up a little bit more to our older chip," Ditzel said.

"We intend to stay ahead in this game, and showing off both these products will convince people of that."

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