Intel should link with Micron on cellphone flash memory - analyst

SAN FRANCISCO: A partnership between Micron Technology Inc. and Intel Corp. would be the most promising option for Intel as it seeks to expand in the market for flash memory in cellular phones, an analyst said.

Shares of Micron rose 5.3 percent Wednesday on speculation Intel might link with the Boise, Idaho-based chipmaker in developing NAND flash memory for mobile phones, said Doug Freedman, an analyst with American Technology Research.

Cell phone makers are increasingly using NAND memory because it is suitable for pictures and music downloads and is cheaper than the technology used in Intel's flash memory, called NOR.

"Micron would certainly be the most logical partner for Intel within the NAND space, and make excellent strategic sense for Intel," wrote Freedman, who has a "buy" recommendation on Micron shares.

Intel spokesman Mark Miller said the company would consider various options for addressing the NAND memory market, but declined to comment on speculation about a partnership with Micron.

"We recognize that it's a market that we need to address," Miller said of NAND. "We're currently looking at various options. There's nothing definite at this point."