Transmeta sells processor division

Intel may be the big winner today, given Apple's announcement that they're going to ditch the PowerPC processor for Intel's chips, but that doesn't mean IBM, which makes the PowerPC, is the day's only loser. Transmeta — which once seemed poised to take on Intel with its low-power Crusoe processor — is selling its processor business to China's Culturecom Technology. Transmeta will still hang around, as it attempts to rebuild its business around its power-saving technology, but all-in-all, it's definitely been a very nice day for Intel.

[Via Slashdot]

[Thought @ Dec 19th 2005 1:36AM]

It takes alot of resources to be competitive in the chip business. R and D doesn't come cheap, nor do chip fab plants.

It's like airplanes...there are only so many companies in the world that can afford to make airplanes. It's not like someone can launch a start up in their garage and compete.

In the end, IBM, which also has the scale, could have continued to compete for Apple's business, but there isn't enough of it to justify the additional R and D. Want to know why IBM never delivered on the next generation of chips for laptops to Apple? It simply wasn't worth the investment for them to create such a chip. Apple doesn't sell enough machines.

So Apple going with Intel is a very smart move, and one that will leverage Intel's scale to Apple's advantage for the first time.

[Wes Felter @ Dec 19th 2005 1:36AM]

Transmeta only sold off their old chips. They are still making Efficeons.

[Jeremy @ Dec 19th 2005 1:36AM]

They only kept the 90nm line not all Efficeons.