Intel aims to capitalize on flash momentum
Published: April 7, 2005, 7:15 AM PDT
By Reuters
Intel aims to extend its recent growth momentum in NOR flash memory in another key area of competition with Advanced Micro Devices.
As part of its drive to excel in the NOR flash market, the chipmaker has unveiled advanced flash memory targeted at consumer electronics products such as flat televisions and digital cameras.
The Intel StrataFlash Embedded Memory, with a capacity of 64 megabits to 512 megabits, will become available this quarter, with a 1-gigabit version set for launch in the second half of 2005.
Flash memory, which has two major subcategories--NOR and NAND--retains data even after power is turned off, making it an ideal rewriteable memory device for mobile and other electronics products.
South Korea's Samsung Electronics dominates the NAND flash market, while Intel and AMD compete neck and neck in NOR.
Intel primarily produces flash memory for the cell phone market. The new chips will let it land contracts for putting flash into consumer electronics gear or industrial handhelds. Typically, phone makers put more memory in a given device than do other types of manufacturers, so the individual cell phone contracts can be more lucrative. Those other manufacturers, however, may not change their devices for a decade, so a single deal can provide revenue for many years.
In 2004, Intel took 24.5 percent of the $9.3 billion NOR flash market, just behind AMD's 25.9 percent, according to data from research firm iSuppli. But in the third and fourth quarters Intel became the No. 1 player, surpassing AMD.
Analysts attributed Intel's success to its aggressive pricing, but Intel Vice President Darin Billerbeck said that is not the whole story.
"I don't consider myself a price leader. I don't drive the pricing in the market down," he said on the sidelines of a company-hosted technology conference in Tokyo.
Billerbeck said average selling prices of Intel flash memory rose in the fourth quarter because it shipped higher-capacity products.
He said Intel will maintain an aggressive stance for further growth in the flash market.
"I'll tell you. I want to be very competitive, and I want to win," said Billerbeck, who worked for AMD for seven years as an engineer before joining Intel in 1988.
CNET News.com's Michael Kanellos contributed to this report.
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