Transmeta to quit making processors?

Transmeta says that it is considering leaving the business of making x86 compatible processors, and becoming as an IP business instead.

This week, the Santa Clara, California, company said it now definitely plans to increase its licensing activities, and that it would “complete a critical evaluation of the economics of its current business model of designing, developing, and selling x86-compatible microprocessor products.”

Analysts expect Transmeta to announce job cuts at their January 21 conference call.

“The cuts could be as low as 100 or as high as 200 people,” Piper Jaffray analyst Richard Shannon said. Transmeta has about 325 employees, he said.

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