US analysts are concerned that the technology slowdown may rob high-profile microprocessor start-up Transmeta of vital momentum.
The company has reported first quarter results, and warns that its $18.6m sales performance — up 50% year-on-year — will be only slightly up in Q2.
The fear is that, without strong continued growth, possible from a low base even in current conditions, Transmeta's customers could begin to return to traditional chip sources such as Intel and AMD.
A snowball effect, delivering more volume users beyond Transmeta's existing key group of Sony, Fujitsu, Casio Hitachi and NEC, is seen as critical to developing the company's niche market.
Products are shipping in Japan, but Transmeta's main notebook market remains sluggish.
The company says it only expects US and European customers to begin shipping products containing its low-power Crusoe chips later this year.