Intel, STMicroelectronics and investment firm Francisco Partners closed a deal Monday to create a new flash-memory chip business. Dubbed Numonyx, the company will focus on delivering innovative memory solutions using combinations of leading NOR, NAND and RAM memory technologies as well as new phase-change memory (PCM).

PCM is a promising technology that provides very fast read and write speeds at lower ability than conventional flash memory and allows for bit alterability normally seen in RAM.

Numonyx will serve customers who build a variety of consumer and industrial devices, including cellular phones, MP3 players, digital cameras, ultra-mobile computers and other high-tech equipment.

Formidable Competitor

“The complementary nature of the two parent companies’ products, technologies and expertise has given us a competitive edge,” said Brian Harrison, CEO of Numonyx. “Immediately, Numonyx is a formidable memory-solutions provider.”

Numonyx begins operations in the growing and dynamic nonvolatile-memory business with considerable momentum. The company is the leading provider of NOR flash memory and

holds a considerable lineup of NAND technologies for growth and DRAM products that supply different depth and value.

With annual combined revenue of about $3 billion, Numonyx is the third-largest nonvolatile-memory provider. According to industry firm iSuppli, the nonvolatile-memory market generated nearly $22.5 billion in revenue in 2007 and is expected to surpass $37.7 billion by 2011.

Is Numonyx a Game Changer?

Numonyx is betting its ability to develop and deliver technologies and advanced manufacturing capabilities — the building blocks for nonvolatile-memory products — will be a competitive advantage. The company said it is currently producing high-volume 65nm NOR memory chips and plans to quickly move to 45nm before the end of the year to lower costs.

With 40 years of combined experience from Intel and STMicroelectronics, Numonyx will have access to substantial worldwide patent portfolios from Intel and STMicroelectronics. The patents and applications cover a variety of technologies,…

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