Intel seeks to regain No. 1 position in flash, plans to triple capacity
Chip giant debuts 90-nm devices on NOR front
By Mark LaPedus
Silicon Strategies
02/19/2004, 9:15 PM ET
SAN FRANCISCO--After stumbling in the flash-memory business, Intel Corp. is aggressively moving to regain its footing in the arena, with plans to take back lost market share from the likes of Samsung, Toshiba, and the Fujitsu/Advanced Micro Devices joint venture.
Intel is taking a number of steps to achieve its lofty goal of becoming the world's largest supplier of flash memories in the market--again. It has reshuffled its management team, rolled out a new product line, and set plans to triple its overall flash-memory capacity in 2004 over 2003.
On the product front, for example, Intel on Thursday (February 19, 2004) rolled out what the company claims is the world's first NOR-based flash memories, built around a 90-nm process technology.
And in another bold move to boost its share, Intel in total plans to increase its flash-memory capacity tenfold by 2006, said Peter Van Deventer, the new director of marketing for flash products at the Santa Clara, Calif.-based chip giant. The expansion includes a combination of fab capacity and die shrinks, Van Deventer said.
The goal is simple for the chip giant, which has gone back to the drawing board over the last two months after a series of miscues. "We've got the funding to go back and become No. 1 in flash," he said. "We're not satisfied--if Intel is not No. 1," he said in an interview with Silicon Strategies.
Analysts believe the company has a fighting chance for a major comeback. Intel's troubles in flash began a year or so ago, when it decided to raise product prices amid the downturn and oversupply in the segment. The strategy was aimed to bring sanity back in an otherwise depressed market, but the plan backfired and customers failed to take the bait, according to analysts.
The miscue, along with the rise of NAND in data storage, caused Intel to lose market share--at an alarming rate. The company fell from first place in terms of flash market share in 2002, to fourth place in 2003, according to iSuppli Corp. Its share dropped from 26.1 percent in 2002, to 15 percent in 2003, according to the El Segundo, Calif.-based research firm.
In terms of market share last year, Intel also found itself behind Samsung Electronics Co. Ltd., the joint venture between Advanced Micro Devices Inc. and Fujitsu Ltd., and Toshiba Corp., according to the firm (see Feburary 9 story).
This, along with other issues, reportedly prompted Intel to reshuffle its management team within its overall wireless group, which also oversees the flash unit. In December, Intel combined its communications-related business units into a single organization to be called the Intel Communications Group (ICG).
Intel's communications efforts had previously been divided between ICG and the Wireless Communications and Computing Group (WCCG). The newly-combined organization is headed by Sean Maloney, Intel executive vice president and general manager of ICG. Separately, the company announced that Ron Smith, Intel senior vice president and general manager of Intel's WCCG unit, would retire (see December 10, 2003 story).
Flash goes to 90-nm
Meanwhile, the new management team within the flash unit appears to be taking an aggressive approach in the market: divide and conquer. First, on the product front, Intel rolled out the world's first NOR-based flash memory device, built around 90-nm process technology.
The new Wireless Flash Memory from Intel is geared for wireless handsets and other applications. Based on the company's own 90-nm process, the first flash memory product will be a 64-megabit, single-bit-per-cell device. Chips based on Intel's multi-level cell (MLC) technology will be available later this year.
The company will offer the devices in various discrete and die-stacked configurations. Intel offers its flash memory products with RAM options at densities up to 1-gigabit in a small package sizes of 8- x 11-mm.
In a keynote address at the Intel Developer Forum (IDF), Sean Maloney, executive vice president of the company's communications group, said the new 90-nm flash memory devices have a 50 percent smaller die size compared to the previous chips.
"Intel Wireless Flash Memory is the highest performance solution available today for wireless applications," said Tom Lacey, vice president of Intel's Flash Products Group. "It combines four innovations into one product: low 1.8V operation, direct code execution (execute-in-place), enhanced factory programming and dual code and data storage in one chip."
Intel Wireless Flash Memory based on 90-nm process technology will sample in April in densities of 64-Mbit. Volume production is planned for the third quarter of this year, with a suggested price of $10.26 in 10,000-unit quantities. Intel plans to sample MLC Intel StrataFlash Wireless Memory on 90-nm later this year. These MLC devices will include 256- and 512-Mbit discrete densities and will offer various stacked configurations.
Watch out Samsung
Going forward, the company will continue to expand and push its NOR-based devices for traditional code-storage and emerging split code/data applications, Van Deventer said. It will continue to make a big push with its MLC technology.
The company has no plans to enter the NAND-based flash market, but it is looking at a number of options for next-generation flash technology, he said. "NOR continues to be at the sweat spot in the cellular market," he said. "NAND is an older technology. We tend not to go after older technologies."
At present, though, NAND-based flash memories are hot and in allocation. In contrast, there is a tight supply for select NOR parts, especially lower density 16- and 32-Mbit devices. "Overall, in general, NOR isn't constrained," he said.
Still, demand for NOR remains robust in wireless and other markets. The demand, coupled by a desire to regain its leadership position, has prompted Intel to aggressively expand its capacity in terms of overall bit count. The capacity includes its fab expansion efforts and die shrinks, it was noted.
The move is reportedly in response to other vendors, namely Samsung, which is aggressively expanding its capacity in both the NAND and NOR fronts. AMD/Fujitsu, Hynix, Infineon, ST, Toshiba, and others are also expanding their flash-memory capacity at an alarming rate.
"We're adding capacity," according to the Intel marketer. In 2004, Intel plans to triple its overall flash-memory capacity in terms of total bit count. And the company will double that capacity in both 2005 and 2006, he said.
At present, Intel is building its flash memories in several regions: Colorado Springs, Colo.; Santa Clara, Calif.; Rio Rancho, New Mexico; Israel and Ireland. The 90-nm flash parts are being built in Santa Clara and Rio Rancho. |
