SANTA CLARA, CA - Intel expects lowered profits in the first quarter, as the company sees falling flash memory prices.

The company announced that it was reducing its expectations for gross margin by 2%, due to lower than expected prices for NAND flash memory chips.

According to reports, Intel will move out of the fluctuating flash memory market by creating a joint partnership with STMicroelectronics and technology investment group Francisco Partners. The company, called Numonyx, will manufacture flash memory for the companies and allow both to get their flash memory businesses off the books.

Numonyx will supply non-volatile memory for MP3 players, digital cameras, computers and other high-tech equipment.

Apple has reportedly also cut its flash memory purchases for 2008, as credit tightens and prices increase.

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PHOENIX, AZ - Suntron Corporation has announced an agreement to manufacture printed circuit board assemblies (PCBAs) with Celco Electronics, Inc.  for the Consumer Electronic market segment.

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TOKYO - Industry reports indicate that Pioneer Electronics is finalizing plans to stop its production of plasma display panels. Shares were up 11.2%, a four month high, as a result of the report.

Pioneer has been struggling to compete with larger rivals such as Matsushita Electric Industrial, maker of Panasonic electronics products.

According to reports, Pioneer will buy plasma panels for from Matsushita, and LCD panels from Sharp Corporation, to also offer LCD TV products based on Sharp's technology.

"Pioneer could have chosen to step up its plasma investment, despite the red ink, but it's a wise step to decide against that," said Mitsushige Akino, Ichiyoshi Investment chief fund manager.

Japanese TV manufacturers have moved to become more cost-effective, as manufacturers with efficient production methods and available capacity, such as Matsushita and Sharp, look for panel buyers, while smaller manufacturers look for ways to obtain display panels without making large investments.

A Pioneer spokesman said the company would unveil its complete strategy when it announces its business plans on Friday.

This move implies that the company will close its panel manufacturing facilities in Kagoshima in Japan, but Pioneer is considering ways to keep the factory open, sources said.