To: milo_morai who wrote (113294 ) 5/30/2000 12:53:00 AM From: RDM Respond to of 1572643
Gateway to Unveil Agreement To Buy Chips From Transmeta By NICK WINGFIELD Staff Reporter of THE WALL STREET JOURNAL From WSJ Tuesday, May 30 In a sign of the personal-computer industry's growing independence from Intel Corp. and Microsoft Corp., Gateway Inc. is expected to say Tuesday that its coming Internet appliances will use a microprocessor and operating software supplied by Transmeta Corp. San Diego-based Gateway becomes the first PC customer of Transmeta's Crusoe microchip and Linux operating system. Transmeta is a high-profile start-up backed by seven U.S. and Asian personal-computer makers. Financial terms of the pact weren't disclosed. Gateway is also an investor in closely held Transmeta. Gateway's move comes as PC makers long tied to PC kingpins Microsoft and Intel have begun looking to new suppliers. Rob Enderle, an analyst at Giga Information Group, said he expects Compaq Computer Corp. and International Business Machines Corp. to employ the chip in coming laptop PCs scheduled for later this year. Gateway is designing the Transmeta products into portable and desktop Web-access devices that it will market beginning in the fall. Gateway plans to bundle the devices with Internet access and services from America Online Inc. "When we did a survey for a processor for our info-appliance, Transmeta was at the top of our list," said Peter B. Ashkin, Gateway's chief technology officer. Crusoe met its needs for performance running video and audio, low power usage and optimized operating software, he said. "The Transmeta guys have been very clever," Mr. Ashkin said. Gateway, which sold 4.6 million PCs last year, won't abandon Wintel (Microsoft's Windows and Intel) technologies. Gateway also plans to increase purchases of chips from Intel rival Advanced Micro Devices Corp. Mr. Ashkin projected the company would sell in the tens of thousands of the Internet appliances this year and hundreds of thousands next year, he said. The Crusoe chip also includes an "emulator" that can run PC programs. But rather than run PC desktop applications, Mr. Ashkin said he expects it to operate popular plug-in programs for displaying animation and playing music. Transmeta, based in Santa Clara, Calif., has lined up an undisclosed manufacturer to make the chips, according to James N. Chapman, Transmeta senior vice president of sales and marketing. Crusoe can run video at near-PC performance while consuming one-fifth the electric power, he said. Prototype Internet devices using the chip have been exhibited by Taiwan's Quanta Computer Corp. and Santa Clara-based S3 Inc.