Transmeta's launch of its TM5800 1Ghz chip has been clouded by US-based rumours that one of its major clients, a notebook vendor, has cancelled plans to announce a new Crusoe-powered range because of supply shortage scares.

However, Transmeta denies that there are any supply problems with the chips, and said that production will ramp up to volume levels throughout July, August and September.

The launch is especially important for Transmeta, whose chips operate at quicker speeds and are easier on batteries than those from rivals such as Intel.

The TM5800 is said to be capable of 1Ghz but will first be launched at between 600-800Mhz, with a 1Ghz version following early next year, some 18 months after it was originally promised.

Transmeta is battling to win market share off Intel through quicker chips that are also easier on laptop batteries. The firm promises chips next year that will be "two to three" times better.

Although Japanese vendors are offering some Crusoe-powered laptops, few have totally embraced Transmeta's baby.

US vendors, meanwhile, remain largely unconvinced.