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Intel Unveils Flash Memory System Phones

Posted on: Tuesday, 14 October 2003, 06:00 CDT

By MATTHEW FORDAHL

SAN JOSE, Calif. (AP) -- A new flash memory system Intel Corp. (INTC) introduced Monday aims to capitalize on the photography and multimedia functions being built into new cell phones.

Packing all memory functions into three or more stacked chips, the Intel StrataFlash Wireless memory system is designed for phones that need extra storage for video, pictures and music.

The design also cuts manufacturing costs.

"This new device allows a cell phone manufacturer in the same very small footprint to be able to store up to an hour of full motion video," said Curt Nichols, vice president of Intel's Flash Products Group.

The package - with a total capacity of up to 1 gigabit - can handle the memory requirements for code execution, data storage and random access memory. The new chips are expected to be available in the first quarter of next year.

"As phones get more and more capable and they can do all these fancy things, end users don't want them to get any larger," Nichols said. "For that matter, they don't want them to get any more expensive, which is why having a specialized chip for low-cost data storage is important."

Intel flash memory is widely used in cellular phones, but not for storing audio, pictures or video. Standalone cameras and music players use a form of flash that's about 30 percent less expensive but slower than the flash memory used in cell phones.

With its announcement, Intel isn't trying to branch into flash for digital cameras and other standalone devices, but offer cell phone providers a cost-efficient way to handle picture, sound and video storage without having to design for the alternative form of flash.

"This is a big move for them, and it's going to allow them to proliferate their technology throughout mobile handsets and have a greater share in handsets than they have today," said Betsy Van Hees, principal analyst at the market research firm iSuppli.

Intel said its pricing would be competitive with rival technologies but did not release details, saying it depends on how each cell phone maker configures the chips.

Its main competitors in the field are Spansion (a joint venture of AMD and Fujitsu), Samsung, Toshiba, ST Microelectronics, Sharp, Renesas Technology.

Though Intel is best known for its microprocessors such as the Pentium 4, it's also a major maker of flash memory. At the beginning of the year, however, its flash sales slowed and it lost market share after a price hike took effect.

Intel is expected to comment further on its flash business when it announces its third-quarter results Tuesday. On Monday, shares of Intel rose 30 cents, to $30.80, in trading on the Nasdaq Stock Market.

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