Transmeta considers shift to technology licensing

— 3:20 AM on January 5, 2005

Transmeta is apparently mulling an exit from processor manufacturing to focus its attention on technology licensing.

Transmeta will complete a "critical evaluation of the economics of its current business model of designing, developing and selling x86-compatible microprocessor products," the Santa Clara, Calif.-based company said in a statement.

Instead of making and selling processors, the company would instead focus more of its energy on licensing chip technology to third parties.

In its most recent quarter, Transmeta's revenue from licensing was 12% higher than from chip sales, so there would certainly be justification for the shift.
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