[I guess we will soon be seeing notebooks that are 2 pounds
lighter getting 10 hours on one charge of the batteries. --MS]


Intel aims at Transmeta with new notebook chips

By Michael Kanellos
Staff Writer
CNET News.com
June 16, 2000, 12:05 p.m. PT

URL: http://news.cnet.com/news/0-1003-200-2091498.html

A cavalcade of notebooks will hit shelves and e-commerce sites
soon, as Intel on Monday will come out with five new notebook
processors, including two low-power chips designed to compete
against Transmeta's Crusoe.

The Santa Clara, Calif.-based company will release a 750-MHz
Pentium III and two Celerons running at 650-MHz and 600-MHz for
the mainstream notebook market, said sources close to the
company.

In addition, two lower-power processors for the ultraportable
market will emerge: a 600-MHz Pentium III that consumes an
average of less than a watt of power, as well as a 500-MHz
Celeron that consumes less than two watts. Nearly all major
manufacturers say they will incorporate some, or all, of these
chips into notebooks in the coming weeks.

Desktops also will be in the news next week, as Intel on the same
day will come out with its 815 chipset, which will allow PC
makers to marry the latest Pentium III technology without
adopting expensive Rambus memory.

All this silicon comes at a critical time for Intel. Pentium IIIs
and many Celerons have been in short supply since October because
of a factory capacity shortage, higher-than-expected demand and,
according to some, sporadic manufacturing difficulties. The
shortage has stunted sales. Rival Advanced Micro Devices,
meanwhile, has been grabbing more market share in the performance
desktop sector.

"Intel's supply capabilities scared a lot of customers," Simon
Lin, CEO of Acer Information Products Group, said in an interview
earlier this week. "Perhaps these alternatives will have a better
chance."

Notebook chips have remained one of Intel's more profitable
segments, but the company will soon see the emergence of a new
competitor in Transmeta.

Chip competition Transmeta, which has developed a low-powered
chip for notebooks, plans to show off at PC Expo later this month
a number of notebooks for the business market from major
manufacturers using its 5400 Crusoe processor.

"We're going to show a lot of great notebooks at PC Expo," said
Jim Chapman, Transmeta senior vice president of sales and
marketing.

The company's coming out party is significant in that no company
to date has seriously competed against Intel in the business
market. IBM has already said it will show off a Transmeta-based
notebook. Compaq Computer and Gateway also are likely to be
there, as both invested in Transmeta earlier this year.

"Intel is getting within striking distance, and that may be all
they need," said Kevin Krewell, an analyst with MicroDesign
Resources. "If I am an MIS guy, and I have a choice between
Transmeta...and Intel, the corporate guy will probably go for
Intel."




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