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| Version 0 | Version 1 |
|---|---|
| Intel and STMicro form flash firm | Intel and STMicro form flash firm |
| (30 minutes later) | |
| Intel, the world's largest chipmaker, and European rival STMicroelectronics are merging their flash memory businesses into a new company. | Intel, the world's largest chipmaker, and European rival STMicroelectronics are merging their flash memory businesses into a new company. |
| Intel and STMicro have been looking for a partner after sales of their flash memory chips came under pressure. | Intel and STMicro have been looking for a partner after sales of their flash memory chips came under pressure. |
| The private equity group Francisco Partners will pay $150m (£76m) for a 6.3% stake in the new company. | The private equity group Francisco Partners will pay $150m (£76m) for a 6.3% stake in the new company. |
| Flash memory is used in devices such as mobile phones, MP3 digital music players and digital cameras. | Flash memory is used in devices such as mobile phones, MP3 digital music players and digital cameras. |
| STMicroelectronics shares rose more than 5% in Paris following the announcement, while Intel shares were up more than 1% on Nasdaq. | STMicroelectronics shares rose more than 5% in Paris following the announcement, while Intel shares were up more than 1% on Nasdaq. |
| Different chips | Different chips |
| The two main types of flash memory are called NAND and NOR. | The two main types of flash memory are called NAND and NOR. |
| NAND chips are used to store pictures on digital cameras and music on MP3 players, while NOR chips are used to store the software and operating systems on devices such as mobile phones. | NAND chips are used to store pictures on digital cameras and music on MP3 players, while NOR chips are used to store the software and operating systems on devices such as mobile phones. |
| Intel has already spun off its NAND flash memory unit into a joint venture with Micron Technology, and says it is still committed to that business. | Intel has already spun off its NAND flash memory unit into a joint venture with Micron Technology, and says it is still committed to that business. |
| The new company will own its NOR memory assets, in addition to STMicro's business in both types of memory. | The new company will own its NOR memory assets, in addition to STMicro's business in both types of memory. |
| "Our objective is that this company will go public," said STMicro chief executive Carlo Bozotti. | |
| The companies said that deal still needed to be approved by regulators and they expected to conclude the merger in the second half of this year. |