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Transmeta set for battle
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November 9, 2000: 6:03 a.m. ET
Crusoe processor designed into 'wearable' computers from ViA
By Staff Writer Richard Richtmyer
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NEW YORK (CNNfn) - ViA Inc., a closely-held supplier of "wearable" computers, said Thursday it will use microprocessors from upstart chip maker Transmeta Corp. in its next generation of products.
That company is the latest technology outfit to throw its support behind Transmeta's "Crusoe" processors. Fujitsu, Hitachi, NEC and Sony all have introduced ultralight notebook computers powered by Transmeta's chips.
The new wearable computers from ViA will incorporate a Crusoe processor operating at 700 megahertz and run Microsoft's Windows 2000 operating system. The United States military is considering adapting them for use by soldiers in combat.
Wearable computers are full-featured personal computing systems that are small and light enough to wear on the body, much like a portable CD player. They typically use a head-mounted display device and can be voice-operated, allowing for hands-free operation. They operate exclusively on battery power.
Executives at ViA in Burnsville, Minn., said they decided to use the Crusoe processors, which have been the subject of some harsh scrutiny in recent weeks, because of the unique way they work.
 Transmeta's Crusoe chips are low-power microprocessors made specifically for portable computers and Internet access devices. They offer the same functionality as competing processors from Intel and Advanced Micro Devices, but differ in the way they achieve their low-power characteristics.
Crusoe chips are designed using a patented technique Transmeta calls "code morphing." That means they use software to translate the instructions typically handled directly by the transistors on other chips.
The code morphing technology allows the Crusoe processors to adjust the amount of power they consume for specific tasks, enabling them to use less power and run cooler than competing processors, Transmeta claims.
But the viability of Crusoe in the highly competitive market for computer processors has been questioned recently. Last week, several market analysts characterized IBM's decision not to use Crusoe chips for an upcoming notebook computer as a severe blow to its credibility in the marketplace. That announcement came just days before the company's highly-anticipated initial public offering.
Then, on the very day Transmeta shares began trading, U.S. Bancorp Piper Jaffray semiconductor analyst Ashok Kumar issued a harsh report in which he said Transmeta's competitive advantage "may be short lived, as Intel is fighting back."
Some technologists also have argued that the code-morphing technology robs Crusoe of actual processing speed, pointing to benchmark tests that showed a Crusoe processor running at 600 MHz logging performance equivalent to a 300 MHz Pentium III mobile processor from Intel.
Transmeta executives say the current industry benchmark tests provide an unfair comparison, because they do not account for the software-based approach to processing. Crusoe-based systems, they argue, are adaptive, and the chips actually operate faster when a program is run more often.
The company said it is working with the firms which develop benchmark tests and expects to make an announcement regarding them at the Comdex computer show in Las Vegas next week.
Despite all the negative publicity in advance of its Wall Street debut, Transmeta shares rang up a 115 percent first-day return Tuesday, making it the first IPO since September to double its initial offering price on its first day of trading.
Dual battlefields evolving
To be sure, Transmeta will be facing some difficult battles as it moves ahead in the competitive market for mobile-computing processors.
Intel already has introduced several low-power processors that offer similar power-consumption features as the Crusoe which use a technology it calls "SpeedStep." The SpeedStep technology enabled the processors to operate at lower speeds when the computer is running on battery power and higher speeds when plugged in.
But Transmeta's chips may also find their way onto a different kind of battlefield as well.
ViA's existing line of wearable computers were developed in conjunction with the Defense Advanced Research Projects Agency, the central research and development organization for the U.S. Department of Defense. They are currently being used in field tests by U.S. Army military police at Fort Polk, La.
The company is still working with the Defense Department, and the next generation of ViA's wearable computer systems are being considered for use in combat.
"The army is looking for a new solution that will allow their soldiers to be in the loop while they're out on the battlefield so they're not relying solely on two-way radio communications but rather have the full capability of the computer on their body," said ViA marketing director Nancy Crowe.
 "This is a breakthrough in wearable technology in that the Crusoe provides less heat and longer battery life, thus allowing our mobile computer users to work longer," Crowe added.
Although she could not say specifically how much more battery life the Crusoe processors will give the new wearable systems compared with competing Intel products, Crowe said it was "significant."
"One of the key messages we're getting back from our customers is battery-life concerns," she said. "When you're out in the field, you don't want it to go dead. So the best solution for us right now is a Transmeta device."
As for the Defense Department, it, too, is considering Intel-based systems for its combat-ready wearable computers. But the Crusoe's low-power characteristics make it a formidable rival, according to Henry Girolamo, a technology program manager at the Army's Natick Soldier Center in Natick, Mass.
"The new ViA PC with Transmeta processor has high performance, low power and no noticeable heat," Girolamo said. "ViA's Crusoe-based computer has the potential to be a central component in a soldier's weapon system, providing communication and information management in critical combat situations."
Transmeta's (TMTA: Research, Estimates) shares bucked a broader downturn in the semiconductor sector Wednesday, finishing 34 cents higher at $45.59. Intel (INTC: Research, Estimates) finished down $3.50 at $42.69, a 7.6 percent decline. Advanced Micro Devices (AMD: Research, Estimates) slipped 88 cents, closing 3.9 percent lower at $21.69. 
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