The world's largest chipmaker Intel chip strategy shift

Has long been the world's largest chip maker Intel has been the proponents of NOR, to establish NAND and micron storage chip venture is it a major shift in the storage chip sector investment strategy, the products of the joint venture will help Intel's sales and marketing.

Over the years, Wall Street urgently asked Intel storage chip market strategy to change its computer, the pressure of investors make the chip giant began to manufacture NAND flash memory, NAND flash memory chips in Apple Com puter Inc usually like iPod digital music players and other consumer electronic products to store music and video. But Intel said hesitation that NAND flash is of little use, it is impossible to replace NOR. It still insists on its plan to support the data storage of the NOR chip that is different from the NAND flash memory. Intel has been a leader in this market since it developed NOR chips in 1980s.

At present, Intel has access to information on the needs of the NOR chip - NOR chips in the field of mobile phone demand is declining, while the NAND flash chip sales growth rate has reached about 60% per year. In November 21st, Intel announced the company and storage chip provider micron technology companies to establish joint venture manufacturing NAND flash memory chip. They will invest about $5 billion 200 million in the joint venture in the next three years. Intel too much change will cause the global NAND flash memory chip market has undergone great changes.

The joint venture, called IM flash technology, has signed an agreement with one of its biggest clients, the Apple Com puter Inc. According to market research firm iSuppli, said Apple Com puter Inc is currently used in the iPod NAND flash chips accounted for 20% of all NAND flash chip production. As the flash orders, the Apple Com puter Inc has agreed to pay $500 million to split Intel and micron, next year joint venture to produce 25% NAND flash memory will be provided to the Apple Com puter Inc. The rest is provided by three companies such as Samsung Electronics, Toshiba Co and modern semiconductor. In the global NAND flash market, although the three companies have 86% market share, but the new venture is expected to win quite a few of their markets, chief executive officer of Steve Appleton micron technology, said: "the next three years, we will become one of the world's three largest provider of NAND flash memory".

NAND flash memory chip sales will help Intel to promote its mobile phone chip sales, although it has sold to store music, photos and video clips of the chip, but it still need to conquer the mobile phone chip market, analysts said, the joint venture is a decline in NOR chip demand signal, he said: "we noticed Intel, the company has confirmed NAND flash has exceeded NOR chip". NOR chip sales this year has declined 14% over the same period last year, sales revenue of only $7 billion 900 million, is expected to continue its weakness in sales. By 2008, NAND's sales will grow from $10 billion 200 million this year to $22 billion 400 million.

Intel said it will continue to maintain NOR chip, Intel vice president and general manager, and is responsible for mobile flash products business Billerbeck said: "NOR chip is one of the main business for us, many analysts believe that the current NOR chip is losing money.