Intel moves against Transmeta’s Crusoe

In a move designed to protect its share of the market for

portable computer microprocessors from the growing popularity of the Crusoe chip

from Transmeta, Intel launched three new portable system processors. Transmeta

is enjoying growing popularity for its processors that rely heavily on software,

rather than on-chip circuitry for its processing power.

As a result, the chip uses much less power than traditional

CPUs and can also be upgraded simply by downloading a new software version from

the Transmeta web site. Recently both Japan's Fujitsu and Hitachi endorsed the

Transmeta chip. Fujitsu will use Crusoe in four different models, the first of

which will debut in November.

Hitachi will start selling Crusoe-based notebooks. IBM,

Toshiba and NEC are considering similar moves. Gateway and America Online have

already announced plans to put the chips in Internet-access devices.

"More-experienced buyers are drifting toward the

Transmeta end of the spectrum," said Rob Enderle, a senior analyst with the

Giga Information Group market research firm in Silicon Valley. "They're

tired of carrying the weight and not convinced they need the performance."

Two of Intel's new chips are Pentium III-based, while a third

uses the Celeron architecture. Intel said at least 10 companies are planning to

introduce new products based on these chips, including Compaq, Gateway, and Dell

Computer.

The new Pentiums run at 850 MHz and 800MHz when computers are plugged into

electrical outlets. Performance drops to 700MHz and 650MHz in battery mode. The

Celeron operates at 700MHz. The chips cost $722, $508 and $181. Transmeta says

its batteries now last as long as eight hours with Crusoe. By comparison, Intel

says that batteries in mobile PCs with its new chips run for five to six hours.