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To: Johnny Canuck who wrote (38465)	11/26/2002 5:15:54 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69102

Associated Press Intel to Raise Price of Flash Chips Monday November 25, 9:02 pm ET By Matthew Fordahl, AP Technology Writer Semiconductor Shares Increase on Word of Intel Raising Price of Flash Memory Chips SAN JOSE, Calif. (AP) -- Intel Corp. said Monday it planned to raise the price of the chips as much as 40 percent, in a sign demand may be growing for flash memory used in cellular phones and other devices ADVERTISEMENT News of the price hike helped boost not only Intel's share price, but also of rival flash-makers Advanced Micro Devices Inc. and Atmel Corp. Intel's move to increase prices by as much as 40 percent starting Jan. 1 is driven by strong demand by makers of next-generation cell phones that have color screens and other high-end features, company spokesman Tom Beermann said. "We're seeing the same trends," said Bharath Rangarajan, director of product marketing at AMD's memory group. "We're working with our customers and evaluating our pricing strategy as we speak." Flash memory makes up as much as 30 percent of AMD's total revenue. It accounts for about 10 percent of Intel's sales. Shares of AMD closed up $1.09, or 15.9 percent, to $7.95 in Monday trading on the New York Stock Exchange. Atmel shares closed at $4.05, up $1.24, or 44 percent, on the Nasdaq Stock Market. Shares of Santa Clara-based Intel jumped 43 cents, to $20.48, in Nasdaq trading. "Clearly, the move is toward more memory per phone," said Eric Ross, an analyst at Investec Inc. But it remains to be seen whether there will be strong consumer demand for such feature-laden phones, he added. Flash prices generally have been falling for the past two years. At that time, chip makers brought new capacity online to meet the demand of the high-tech boom. Then demand for the chips suddenly weakened as the economy sputtered into recession. Intel: intel.com AMD: amd.com Atmel: atmel.com