Intel has spun off its NOR flash memory business into a new company, Numonyx, created in partnership with semiconductor specialist STMicroelectronics.

Numonyx will make both NOR memory chips used to store multimedia data in mobile phones and NAND chips for other portable devices such as media players and handheld PCs.

Around 2,500 staff will be transferred from Intel to Numonyx. Intel will retain about 45 per cent ownership in Numonyx, while STMicroelectronics will control about 48 per cent.