A new deal between Micron Technology Inc. and Intel Corp. could bring hundreds of jobs to Utah and result in the ramping up of Micron's Lehi facility to full capacity.

The two tech giants said Monday they would form a new company called IM Flash Technologies LLC to manufacture NAND flash memory that is used in many consumer electronics, removable storage and handheld communications devices.

The new venture would manufacture products exclusively for Micron and Intel. However, both of those companies have entered into separate long-term contracts to supply Apple Computer Inc. with "a significant portion" of their share of IM Flash's NAND flash memory output, with Apple to prepay $250 million to each company.

Micron has invested about $1 billion so far in the Lehi plant, which originally was designed for manufacturing but now has 500 workers involved in chip testing.

"If all goes well . . . our test employees will transition to manufacturing NAND flash. . . . We would see a transition over time, and that would mean in 2007 we'll see some additional investment in the facility from a construction perspective — again, if everything goes the way we're envisioning," said Trudy Sullivan, a Micron spokeswoman.

As for whether employees would be added to that 500 and how quickly that would occur, "we're not at the point where we're giving out those details, but it could potentially result in hundreds of jobs," she said. "But that depends on how things play out, and the extent that Lehi participates in the partnership is going to be determined by how competitive the business environment is in Utah as the deal evolves."

Micron, which will own 51 percent of IM Flash, said production will take place initially in manufacturing facilities in Boise; Manassas, Va.; and Lehi. Boise will be the first focus, followed by Manassas and then Lehi, Sullivan said. Initial production from the company is expected early next year.

Intel and Micron have agreed to initially contribute about $1.2 billion each in cash, notes and assets to IM Flash. If certain conditions are met, each would add about $1.4 billion over the next three years "and intend to make additional investments as appropriate to support the growth of the operation," Intel said in announcing the venture.

"If things go the way we hope, there will be some investment in construction and build-out, and then there would be tooling and equipment and that sort of thing," Sullivan said about further Lehi investment, although she said putting a dollar amount on that investment "is a little premature."

"Out of the chute, we know there's a significant opportunity here, and as the deal dynamics continue to evolve, there's potential for us to maximize those investments that have been made in the site and take that to full capacity," she said.