Intel, Micron plan to build Singapore plant

Intel Corp. and Micron Technology Inc. will build a flash-memory chip plant in Singapore to increase their production of the semiconductors that are the central components of iPod music players and digital cameras.

The two companies, which in January set up a joint venture, said in a statement Monday that they will open a fourth plant by the "second half of 2008."

Micron spokesman Dan Francisco said new factories cost about $3 billion. He declined to say what the IM Flash Technologies venture plans to spend on the new plant.

By adding production, the companies plan to challenge Samsung Electronics Co. and Toshiba Corp. in the Nand market, where sales are growing faster than for other chips that store data without power.

Nand chips are cheaper to make and can store larger music and video files than the flash-memory chips Intel makes. By working with Micron, Intel, based in Santa Clara, Calif., was able to start making Nand chips sooner.

The two produce Nand chips at Micron's headquarters in Boise and recently started production at a Manassas, Va., plant. They are setting up a factory in Lehi.

Production and construction is ahead of schedule at all of the facilities, Francisco said.

Micron shares rose 34 cents, or 2.4 percent, to close at $14.32 Monday on the New York Stock Exchange. Intel rose 31 cents to $20.82 on the Nasdaq Stock Market.