Feb 07, 2001 -- SAN FRANCISCO-IBM Corp., which
late last year reversed a decision to use Transmeta Corp.'s Crusoe
microprocessor in a notebook computer, will no longer be the exclusive
supplier to Transmeta.
Transmeta (stock: TMTA) has
signed Taiwan Semiconductor Manufacturing Co. (TSMC)
as a second
source for foundry wafers, according to Transmeta CEO David Ditzel.
declined to say whether IBM would remain its primary foundry.
Ditzel disclosed the new deal with TSMC at the Bank of America
Conference here on Tuesday, noting that he expects wafers
to be delivered from
TSMC sometime in the first half of this year.
Until now, IBM Microelectronics supplied all of Transmeta's chips
Burlington, Vt. fab. "We've got a great relationship with
IBM," Ditzel said.
"They've done a spectacular job for us and they've
actually got a team of people
in Vermont dedicated to supporting
Transmeta. We're getting all the capacity we
need on among their most
So why has Transmeta, Santa Clara, Calif.,
signed TSMC (stock: TSM) as an
alternative supplier? "Customers like
second sources. It's just safety," he
asked if IBM (stock: IBM) would remain Transmeta's primary foundry
supplier, Ditzel hedged his answer. "They will be a primary supplier,"
"We'll adjust the mix depending on availability and pricing."
Transmeta's prestige received a blow several months ago when IBM
decided not to
use the Crusoe in an upcoming version of its ThinkPad
notebook computer. IBM is
expected to use a rival low-power processor
recently introduced by Intel Corp.
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