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Too Many Missteps In Intel's Flash Dance; Can Former Leader Regroup?(INTERNET & TECHNOLOGY)
Byline: JAMES DETAR
The world's largest chipmaker seldom loses its grip on a market, but Intel Corp. did just that in flash memory.
In a report set to be released Monday, research firm iSuppli Corp. says Intel last year fell to No. 4 in the flash chip market, which it had led for years. Flash chips are used in cell phones, digital cameras and other products.
Spansion, a joint venture of Advanced Micro Devices Inc. and Japan's Fujitsu Ltd., moved ahead because of an Intel pricing gaffe. A year ago, Intel raised prices and rivals didn't, so some Intel customers fled.
Samsung Group and Toshiba Corp. moved ahead of Intel because they make a hotter type of flash, called Nand. Intel and AMD make Nor flash chips.
Intel knows it's slipped and is fast trying to regroup, says iSuppli analyst Betsy Van Hees.
"Intel has quite a big flash campaign going on," Van Hees said. "They went to tier-one customers and distributors this week (week of Feb. 23) and talked to them about their plans. Their customers say they've seen some pretty aggressive pricing from Intel."
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