Intel drops flash prices

Electronic News, Oct 18, 1993 by Jim DeTar

SANTA CLARA, CALIF.--Intel this week will divulge a 13 percent price reduction for its 2-Mbit and 4Mbit boot block flash devices. The move comes as the firm increases flash memory production to meet a worldwide shortage via a ramp-up at its 0.8 micron NPX subcontractor facility in Japan and as higher density parts also come on stream at Intel and elsewhere.

Intel cut the prices of the NPX-made 2Mbit 28F2000/002BX and 4Mbit 28F400/0004BX, available in both 60ns and 80ns versions. New prices for the 60ns 2Mbit and 4Mbit devices are $17.80 and $25.60 each, respectively, when purchased in 10,000-unit volumes. The 80ns 2Mbit and 4Mbit devices are priced at $16.20 and $23.30 in the same unit volumes.

The price reduction is the first for flash products since Q392, but as shortage eases, orthers many match Intel's flash cuts.

Sundisk last week reduced prices on flash card products (see page 18), lowering 10MB versions to $600 from $879 and 5MB versions to $375 from $499. Sundisk's flash-foundry Matsushita is now ramping up 0.5 micron 16Mbit devices and as Matsushita moves more production from 8Mbit to 16Mbit devices, Sundisk anticipates it will be able to bring down pricing across its flash card line.

Based on its 8Mbit FlahFile memory chips, Intel soon plans to roll out 20MB memory cards. Its higher-density boot block chips are for PC manufacturers in BIOS storage applications. "Top boot" and "bottom boot" configurations are available to provide compatibility with a wide range of MPUs and MCUs.

Although Intel does not disclose production numbers for individual product lines, Marlene Hudson, component product marketing manager for Flash Memory Devices, said the company is no longer capacity constrained for its flash product lines. "The situation for Q4 is that we have more supply than we expected. We are ahead of our expectations."

Intel had attributed the overalls flash memory shortage to a sharp increase in demand, and Ms. Hudson said Intel's own shortage was attributed in part to the need to retool overseas facilities. "Earlier this year, we were re-equipping our fab overseas (NPNX). We solved that problem in Q3 and we are going over the production goals we set."

Concurrently, Intel also is working wth partner Sharp Corp. to develop Intel's new 0.6 micron ETOX IV process technology at Sharp's eight-inch wafer factor in Fukuyama, Japan. Manufacturing on the 0.6 micron process at the Sharp factor will quadruple the 8Mbit-unit capacity per wafer to further increase the supply of Intel's highest-capacity flash chips.

Ms. Hudson said Intel has begun shipping 8Mbit flash products manufactured at the Sharp facility, meeting its previously stated Q493 production goal.

Intel had said it would increase flash unit output over the following 18 months by 400 percent to meet demand (EN, July 19), saying output would be boosted at both its NPNX sub-contractor facility and its own fab 7 Albuquerque, N.M. Intel at that time began phasing in 0.8 micron production technology to double unit capacity per wafer, increase the supply of low-density flash, and introduce faster versions of these products.

Intel also has begun shipping fast bulk-erase flash components at the low-end--the 1Mbit 28F010 with an access time of 65ns and the 2Mbit 28F020 flash component with a 70ns access time.

The faster 1Mbit 28F010 and 2Mbit 28F020 also result from Intel's 0.8 micron ETOX III process technology. The 28F010 and 28F020 are shipping in volume now, Intel said. The low-density devices are typically used by PC and embedded computers designers to provide non-volatile, in-system-unpdatable code and data storage and the higher-speed versions and designed to allow designers to take advantage of flash memory in many high-speed designs that require zero-wait-state memory performance.

Previously, Intel was using the 0.8 micron process on its 2- and 4Mb products. Its 8Mb products are products are produced on both 0.8 and 0.6 production process. The new components are available in 32-lead PLCC and PDIP packaging, priced at $10.50 each for the 28F010 and $17.50 for the 28F020 in quantities of 10,000. TSOP packaging is also available.