Transmeta to withdraw from the CPU market

— 1:11 AM on February 7, 2007

After partnering up with AMD and suing Intel in the span of just a few months last year, Transmeta has decided to pull out of the microprocessor market, Ars Technica reports. The start-up, which is known for its low-power Crusoe and Efficeon processors, is reportedly in the process of "streamlining its operations" and changing its business model from making and selling processors to licensing its intellectual property to third parties. This streamlining has already resulted in the termination of 39% of the company's staff, and Transmeta expects to save between $17-23 million annually because of the change. The move seems logical; Ars says Transmeta's revenue from licensing has been greater than its revenue from CPU sales for the past few years.

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