Advanced Micro Devices and Transmeta said on Monday that they had signed an agreement under which AMD will sell Transmeta Efficeon processor to emerging markets. This marks the second time when Transmeta “outsources” marketing of its products to a third-party. The chips will be installed into computers that are sold under Microsoft FlexGo initiative.

“AMD’s worldwide channels and consumer brand will accelerate the penetration of this specialized Efficeon microprocessor into high volume emerging markets.We look at this announcement as the beginning of a very successful collaboration between AMD and Transmeta to bring Microsoft FlexGo technology to market,” said Arthur L. Swift, president and chief executive officer, Transmeta Corporation.

AMD will sell “enhanced” version of Transmeta Efficeon processor produced using 90nm process technology. AMD, however, did not say whether it would manufacture such chips using its own foundries.

Microsoft FlexGo technology, aligns hardware, software and service solutions to work in unison to meter and add time to the PC, so retailers, telecommunications providers, banks and system builders can offer PCs to a broader community of customers. FlexGo technology enables consumers or small businesses to have a PC at a price they can afford, and pay for time only as they use it. The technology informs users of time used, showing them how to add more hours by simply typing in a number from a prepaid card. If time is not added, the PC gradually moves into a “reserve tank” or limited-access state until customers purchase more time either online or at local vendors. The PC will be fully owned by final users after a number of hours are purchased.