IBM dumps Transmeta - Reports

Computer giant IBM has shelved plans to include Transmeta's Crusoe microprocessor in its ThinkPad 240 notebooks, according to reports Wednesday.

Despite demonstrating a Transmeta powered ThinkPad at the US PC Expo in June, the reports suggest IBM has no immediate plans to include the chip in its notebooks.

IBM's decision has come at a precarious time for Transmeta: the company will issue its initial public offering (IPO) on 6 November, according to company underwriter Morgan Stanley Dean Witter.

Its technology has also been criticised of late with the suggestion that its power saving benefits come with a significant performance hit.

Although IBM would have been a huge scalp for Transmeta, other manufacturers including Sony, NEC and Hitachi remain committed to producing products using its Crusoe processors.

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