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IBM no longer exclusive FAB
Date: Saturday February 10, 2001
Category: Web News
Manufacturer Link: Ibm Discus -- BBS
IBM is no longer TMTA's exclusive FAB partner.
 


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 foundry
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.
He declined to say whether IBM would remain its primary foundry.

Ditzel disclosed the new deal with TSMC at the Bank of America Securities
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 from its
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 advanced technology."

So why has Transmeta, Santa Clara, Calif., signed TSMC (stock: TSM) as an
alternative supplier? "Customers like second sources. It's just safety," he
responded.

But when asked if IBM (stock: IBM) would remain Transmeta's primary foundry
supplier, Ditzel hedged his answer. "They will be a primary supplier," he said.
"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.
(stock: INTC).

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