14 DAY TRIAL // Intel and Micron will form a new company that will manufacture NAND flash memory chips. The NAND memory industry is a profitable one, being right now in full expansion and having big clients like Apple. NAND flash is used for a large range of mobile devices, from digital cameras to iPods.
The new company will be called IM Flash Technologies and will exclusively produce flash memories for Intel and Micron. These will be used for consumer electronics and mobile communication devices. Every company will contribute with about 1.2 billions USD for the new fusion, and the investing plans rise up to 1.4 billions in the next three years.
IM Flash will be owned by Micron in 51 percent and by Intel in 49 percent. The first products will arrive on the market starting early 2006. A big transaction was already made with Apple, who has preordered and paid each company 250 millions USD.
The new company should help in the development of new smaller and cheaper musical players, and also at lowering the crisis risk of memory shortage, which would lead to a rise in prices.