Transmeta mulls exit from processors

Many of you will have heard of Transmeta, even if you haven't used one of their processors. They have been producing mobile X86 compatible chips for a while now, but now they are evaluating whether to continue making them.

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

The shift is a reflection of the harsh realities the company faces. Designing, manufacturing and selling chips is exceedingly costly, even when the actual manufacturing gets outsourced. Price wars are also common. By contrast, licensing intellectual property often involves far less overhead. Rambus, one of the more successful so-called IP (intellectual property) companies, has only about 200 employees.

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Read more at CNET.