To: Craig M. Newmark who wrote (98124 ) 2/3/2000 3:20:00 AM From: Paul Engel Read Replies (3) | Respond to of 186894
Craig - Another article on the Intel-Ericsson Flash Memory Deal Paul {=============================} 02/03 12:20A (DJ) Intel To Supply $1.5 Billion Worth Of Flash Chips For Ericsson's Phones Story 0009 (ERICY, ERICZ, INTC-D, INTC, ROK, ROKW-D, S.ERC, I/CMT, I/DTC...) NEW YORK -(Dow Jones)- Computer chip maker Intel Corp. has landed a contract to supply Sweden's Telefon AB L.M. Ericsson with $1.5 billion in flash-memory chips over the next three years, one of the first major deals in its effort to tap into the fast-growing market for cellular phones, Thursday's Wall Street Journal reported. The deal ensures a steady supply of chips for Ericsson at a time when flash-memory use is rising rapidly. Once used primarily in computers, flash memory is becoming an increasingly important component of mobile phones, hand-held organizers, digital cameras and music players that download songs from the Internet. Demand for flash memory should soar over the next several years as phones bulk up on memory to be able to access the Web, the Journal reported. Unlike standard memory, flash chips store data even when a phone or computer is turned off. An Ericsson spokesman said the company expects to sign a contract to buy memory chips from Intel but couldn't confirm the value of the deal. About 275 million mobile phones were sold world-wide in 1999, and the market is growing more than 30% a year. By moving into chips for mobile phones, Intel, the world's largest chip maker, hopes to offset the impact of falling prices and increasing competition in its microprocessor business. Pentium processors generated about 80% of Intel's $29 billion in 1999 sales. The other 20% came from flash memories and networking equipment, the Journal reported. Copyright (c) 2000 Dow Jones & Company, Inc. All Rights Reserved. Additional Codes (I/SEM, I/TEL, N/ADR, N/WEI, M/TEC, M/NND, P/DCO, P/DCZ, P/DDE, P/DEE, P/DEX, P/DHS, P/DSE, P/DTE, P/NDV, R/CA, R/EU, R/NME, R/PRM, R/SCA, R/SW, R/US, R/USW)