To: Maurice Winn who wrote (4586 ) 9/16/2002 8:47:43 AM From: waitwatchwander Respond to of 12245 CellularRAM Offers Promise, Faces Hurdlese-insite.net By Peter Brown -- Electronic News, 9/16/2002 Taking on Game Boy? Micron Technology Inc. and Infineon Technologies AG today will move one step closer to rolling out their DRAM-hybrid technology, targeted at mobile consumer applications. The companies are positioning the memory as an alternative to PC-dependent DRAM. Cypress Semiconductor Corp. has signed an agreement with the two DRAM vendors to collaborate on the development of the CellularRAM, which is said to combine the performance of SRAM with the storage capacity of DRAM on one chip, driving down cost and increasing storage capacity. For Infineon and Micron, specifically, this will allow the companies to venture into areas outside of the PC to market their DRAM. "This is definitely worth the effort for the DRAM market makers," said Brian Matas, VP of market research at IC Insights. "If [Micron and Infineon] can offer a price-point or a less costly part at competing performance with a nice packaging setup, this will be a viable technology for them." The market for pseudo-static RAM in portable applications could be the solution DRAM makers have been searching for, said Mario Fazio, director of strategic marketing for wireless products at Micron. "We could see this market reaching the $1.5 billion range by 2005," he said. DRAM vendors have been looking to get their memory into products other than the PC—from digital cameras to cell phones—for more than a decade, said Steve Cullen, director of the semiconductor group at In-Stat/MDR. (InStat/MDR is owned by Reed Business Information, the parent company of Electronic News.) "The problem is that even though DRAM will work and be a good technology fit in these devices, these applications won't have very much of it from a vendor's perspective," Cullen said. "It won't be a savior for them." The three companies plan to roll out 32Mbit and 16Mbit devices in Q1, followed by 128Mbit and 64Mbit devices, which are slated for production in Q3. So which wireless applications will demand this much storage? The answer is many, the companies say. If cellular phone makers begin to bring high-quality games and GPS applications to phones in bulk, this memory may find a home there. Other applications could include video through the phone in either a videoconferencing-type application or television capacity, Matas said. In Asia there are already several applications for cellular phones, such as digital cameras, multiple ring tones, Web browsing and GPS capability, that consume a significant amount of memory, said Allan Nogee, senior analyst at In-Stat/MDR. The question being asked by analysts is which will come first, the memory or the software. "They could be building this memory now and then showing it to vendors who then would go and develop applications to fit this memory," Matas said. "Or these companies may already be working with OEMs which are putting together applications right now that will need this memory." However, these three companies also face another problem—Intel. At last week's Intel Developer Forum (IDF), the MPU giant introduced two software tools designed to allow handheld devices to execute instructions and applications directly from flash memory. This will allow the processor to execute in place of the RAM in a cell phone or PDA, according to Doug Patterson, software product manager for Intel Corp.'s flash products division. While it won't eliminate the need for RAM altogether, it could displace what is needed by as much as 50 percent, Patterson said. That's not a good sign for a high-density wireless memory device that has yet to hit the market. Tom Murphy contributed to this story.