Mark Hachman, writing at TechWeb News, reports that S3 has established an internal subsidiary to develop and sell Crusoe-based Internet Appliances. The product line appears likely to include an Embedded Linux based web pad. Hachman writes . . .

“S3 has quietly formed an internal subsidiary to design and sell Transmeta-based Internet access devices, part of a retooling of S3 itself. S3 Inc., the Santa Clara, Calif.-based company that once dominated the graphics market, is in the midst of trying to reposition itself as a dual-purpose digital media and Internet-access company. The process began in April, once the company had shifted its graphics chip unit to a joint venture between itself and Via Technologies Inc.”

“. . . at the launch of Transmeta's Crusoe processor in January of this year . . . Andy Wolfe, S3's chief technical officer, said the company is developing a Linux-based Internet-access tablet capable of reading digital books, surfing the Web, and processing digital video based on the Transmeta TM3120, a low-power chip designed for mobile Web appliances . . .”

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