FPSLabs : Intel, STMicroelectronics birth Numonyx

Posted by Thomas Gribble in March 31st, 2008

Despite being faced with problems ramping up their 45nm production levels, Intel Corp. today announced the finalization of a business partnership with STMicroelectronics under which a new independent company will be based. The company, Numonyx B.V., will design, develop, and manufacture NOR and NAND flash memory products. Intel’s dealings with STMicroelectronics had the public attention in 2003, when the two formed a joint development program to focus on Phase Change Memory. The two companies continued development of PCM products and began shipping prototype samples in February 2008. The future product, codenamed “Alverstone”, along with much of Intel’s and STMicroelectronics’ PCM holdings and technologies will be transferred to the ownership of the new company, Numonyx.

Under the agreement, Intel will have a 45.1 percent stake in the company while STMicroelectronics will hold 48.6 percent. The remaining 6.3 percent will be owned by Francisco Partners private equity firm, who is granted this ownership for their $150 million cash investment. The company will have a broad yet focused market, providing complete RAM memory solutions for high-tech devices like cellular phones, MP3 players, digital cameras, and ultra-mobile computers. Numonyx enters the market as the third largest non-volatile memory provider with a combined annual revenue of approximately US $3 Billion thanks to the combination of holdings from Intel Corp. and STMicroelectronics. The company also inherits seasoned management personnel from both companies, with former VP of Intel’s Flash Memory Group Brian L. Harrison at the helm as CEO.

Obviously this is a thoroughbred company poised to take the non-volatile memory world by storm. More significantly, however, is that it will inevitably retain the same innovative spirit that has fueled Intel Corp.’s engineering advancements for the past couple of decades. Content available on the company’s website also leads one to believe that they have a very strong internal commitment to providing new and top-quality products. It will be very interesting to see what advancements this new company makes in the coming years.

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