Intel NOR group director of marketing Allen Holmes says the purpose of the move is "combining manufacturing and its employees with NOR flash memory research and product design and the workers from those groups." According to Holmes, this will enable "greater efficiency and productivity," although he refused to comment on any associated financial savings.
In related news, a Taiwan agent for Silicon Storage Technologies—a manufacturer of NOR flash memory—reportedly expects demand for NOR flash to increase during the remainder of this year. According to the agent, demand will "grow fast" for MP3 players, networking devices, and LCD TVs, as well as Personal Handyphone System cell phones in China, all of which use NOR flash memory. The agent says this will cause average selling prices for NOR flash to hike up in the second, third, and fourth quarters of this year.