Transmeta pushes Linux gadgets in China

Transmeta has signed on Chinese computer maker Chinese 2000 Holdings to develop and market low-cost Linux-based devices such as notebooks, PCs and set-top boxes.

Transmeta, a manufacturer of low-power, Intel-compatible chips, says its chips consume less power than Intel or Advanced Micro Devices processors--with similar performance. But Transmeta has struggled to win contracts with major PC makers. The company said it hopes a growing interest in Linux in the Asia-Pacific region will boost demand for Transmeta-powered products.

Chinese 2000 Holdings will develop products based on Midori Linux--Transmeta's own Linux distribution for mobile devices. In exchange, Transmeta said it has taken an equity ownership in Chinese 2000 Holdings and the two companies have made a profit-sharing arrangement for revenue from the sale of Midori Linux services and support. The companies are aiming products at China, Hong Kong, Macau and Taiwan.

Interest in Linux has grown in Asia-Pacific countries because, unlike a lot of other software, its intellectual property is not owned by U.S. multinational corporations. Linux is distributed under an open-source license that broadly allows anyone to modify and redistribute the code, as long as the modifications are shared with the developer community.

The Chinese government is backing a home-grown Linux system called Red Flag, while in Thailand, HP is selling a low-cost "people's notebook" running on Linux.

Because of Linux's stability, some electronics makers are already using it to power high-end consumer electronics devices, one the best-known being the TiVo digital video recorder.

"Transmeta's unique combination of microprocessor, system-level and Linux expertise, coupled with Chinese 2000 Holdings' experience in the Asian markets, make a formidable partnership," Transmeta Chief Executive Matthew R. Perry said in a statement. "Together, we offer our customers a comprehensive approach to Linux-based computing."

ZDNet UK's Matthew Broersma reported from London.