August 12, 2009

Intel Corp. and Micron Technology Inc. announced plans to offer technology that could boost the capacity of widely used chips known as flash memory.

The companies have a joint venture to produce what the industry calls NAND flash chips, which store data in devices such as cellphones, iPods and USB drives.

Intel and Micron said coming versions can store three bits of data in each of the millions of storage cells on a chip -- compared with one or two bits per cell for most NAND chips. Storing three bits in roughly the same space makes it possible to offer chips with greater capacity or lower cost, or both.

SanDisk Corp., a big maker of USB drives, has previously discussed chips that can store three or four bits per cell and has patents related to those technologies. Eli Harari, its chief executive, recently told analysts that Micron wasn't licensed to use SanDisk's patents, stating that is a problem for Micron.

Kevin Kilbuck, Micron's director of NAND marketing, said its own intellectual property in the field is strong. Micron's ability to release three-bits-per-cell technology is "solid," he said. An Intel spokesman declined to comment. Intel and Micron said the technology will be in mass production starting in the fourth quarter.

Source:-http://online.wsj.com