Smart displays are touch-screen monitors wirelessly connected to their host allowing users to access PCs from remote locations in home or office, Transmeta said. They could take the form of a handheld screen or tablet that provides the display but communicates via a wireless LAN to send user commands and to upload content.

Transmeta has worked with Microsoft in the past on so-called tablet PCs.

"Smart Displays represent an important evolution in personal computing and Microsoft, Transmeta and many other industry-leading companies are backing the proliferation of this emerging category," said Aubrey Edwards, director of marketing for the embedded and appliance platform group at Microsoft, in a statement issued by Transmeta.

Smart Displays are already available from display and computer manufacturers and more are in development, Transmeta added.