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Crusoe bug may prompt NEC to recall notebooks

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CIOL Bureau
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An alleged problem with the Transmeta Crusoe processor is reportedly causing NEC to consider a recall of thousands of Crusoe-based notebook computers it has already shipped. Sony, reportedly, is also testing for the alleged problem with the chip, which relies on software, rather than on-chip circuitry for much of its computing power.



Transmeta shares tumbled on Wall Street on word of a possible NEC recall. The shares fell $5 to $24 and are now trading at less than half the $50 value after the first day of trading on November 7. The NEC problem is but the latest in a series of disappointing developments. Earlier this month, IBM gave up on a program to use the Crusoe in its ThinkPad line of notebook computers after the company could not squeeze the anticipated 8 hours of battery life out of the Crusoe ThinkPads.



Adding to Transmeta's woos, Intel is now in production with a Pentium processor that uses just 1 Watt of power, about the same energy consumption as demanded by the Crusoe chip. But, Intel offers manufacturers coop-dollars, rebates for advertising their computers with the Intel-Inside logo. The loss of NEC and Sony, should they decide to delay or abandon the Crusoe-based product lines, would be a potentially devastating blow to Transmeta.

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