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CNET News.com: Transmeta: Are the chips down?

Nov 07, 2001, 08:53 (4 Talkback[s])
(Other stories by Michael Kanellos, Rachel Konrad)
"Toshiba had big plans earlier this year for the U.S. release of a laptop with an energy-efficient chip from Transmeta, a product that would have represented a coup for the upstart chipmaker in its rivalry with mighty Intel.

But in the latest setback for Transmeta, Toshiba quietly pulled the plug on the notebook this summer, partly because of delays surrounding Transmeta's latest chip, executives told CNET News.com.

Since it launched a successful public offering one year ago, the company has switched CEOs twice, the stock price has plunged amid the broader economic slump, and its chips are still scarce in the United States. In addition, the company has been hit with manufacturing missteps that have prevented it from stealing customers from Intel and carving out a successful niche in the $22 billion microprocessor market.

In some respects, Transmeta's battle with Intel mirrors the plight of smaller companies that have competed with Microsoft in the software market. In both industries, the barriers to entry have become so high that many companies are reluctant to compete, and those that do fight a David-and-Goliath battle that has been brutal on the little guy."

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