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AMD to resell Transmeta chip

For pay-as-you-go PCs

AMD will resell a processor designed by Transmeta for Microsoft's pay-as-you-go PC initiative as part of a strategy to connect people in developing countries to the internet, Transmeta said yesterday.

AMD plans to market and sell the Transmeta chip, called the Efficeon microprocessor, in underdeveloped countries where many people do not own PCs or have access to the internet. Transmeta designed a specialised version of a processor it already had, called Efficeon, to be a part of Microsoft's FlexGo prepaid PC plan.

FlexGo is the name for a combination of hardware and software that enables Windows PCs to be sold and used on a pay-as-you-go basis, much like wireless phones.

"For the first time, Transmeta and the Efficeon technology will have the brand and power and reach of AMD," said Art Swift, president and chief executive officer of Transmeta. "[Our goal is] to reach as many consumers in the world as possible in emerging markets."

The specific terms of the deal were not disclosed, but Swift said AMD and Transmeta have an exclusive arrangement for AMD to brand the specialised Efficeon chip under its own name and resell it around the world.

AMD plans to use Microsoft FlexGo and its Efficeon deal with Transmeta as part of its 50X15 initiative, which aims to build a global network of partners and business models to help connect 50 percent of the world's population to the internet by 2015.


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