Intel and Micron Technology announced that they jointly developed a new, more powerful flash memory chip designed to offer greater capacity for mobile devices and other consumer electronics. The new chip technology is based on the industry's first 50-nanometer NAND flash memory chips, and offers 4Gb of memory, whereas the current generation of flash memory, like that which used in MP3 players, typically reaches only 1Gb.

Possible for PCs

Flash memory comes in two flavors, NAND and NOR. NAND is more commonly used to store large quantities of data. The ability to increase storage by making smaller flash memory could not only impact storage in mobile devices, but could also eventually lead to the regular use of flash memory in place of hard drives on laptop computers. And it could lead to lower prices.

Nicole d'Onofrio, an analyst with technology research firm Current Analysis, said that these kinds of chips could be a "big boon" for consumers. "We'll see higher capacity digital audio players," she said, "possibly as early as next year's holiday season."

"It definitely is one step closer to flash becoming a hard drive replacement," she said, "although that is still probably a long ways off."

NAND Flash Wars

IM Flash said that, while 4 gigabits chips were being tested at this point, a range of different memory sizes are planned when the chips go on sale in 2007.

But the newest round of the NAND flash wars have just begun. Samsung, the leader in NAND flash with over 50% of the market, announced last week it was beginning production of 60nm NAND chips, with an 8Gb capacity.

Micron has been producing NAND chips since 2004, but this is Intel's first effort in the area. It is expected that the smaller NAND chips will first appear in products from Micron and Intel, including Intel's next-gen fast-booting PC motherboards. IM Flash also has a long-term agreement to supply flash chips for Apple's iPod.