Micron Technology (NASDAQ:MU), a leading provider of advanced semiconductors, became the first company to offer Phase Change Memory (PCM) solutions for mobile devices in volume production. Earlier this month, it announced high volume availability of the 45 nanometer PCM technology, which provides chipset vendors and handset manufacturers with a product with enhanced features and capabilities that meet the growing needs of the wireless market.
The PCM technology is capable of providing higher data speeds compared to conventional NAND flash with the added potential to retaining data when power is switched off. Other advantages over traditional memory devices such as NAND include better boot time, simplified software development, higher performance, and overwrite capabilities.
Though many are skeptical about the technology’s cost competitiveness and temperature sensitivity compared to traditional memory devices, Micron is confident that its PCM product will establish a foothold in the wireless industry.  The initial memory modules will come in 1Gb size and will be primarily aimed at high-end feature phones. The company however plans to roll out the technology for smartphones and tablets in the near future.
Key relationships with global customers and enablers, ongoing engagements with major device manufacturers, and strong cooperation with Intel (NASDAQ:INTC) Mobile Communications, including the recent PCM qualification, puts Micron in a good condition to supply volatile and non-volatile memory products for entry level phones as well as smartphones and tablets.
We believe Micron’s continued commitment toward driving innovation and development of advanced products would help it cater to increasing market demand in the wireless industry. Currently, the company provides virtually every memory product utilized in wireless devices, including NOR, NAND, LPDRAM and eMMC embedded memory. Being the first company to start volume production of the PCM technology not only enhances Micron’s product portfolio, but also gives it a competitive edge over other players in the market.
Our current price estimate of $7.47 for Micron, stands at a premium of over 20% to the current market price.Notes:
- Micron claims first high-volume production of 45-nm PCM, EE Times, July 19, 2012 [↩]