Spansion has jumped into the mobile phone market with a new Flash memory chip that will cover all the needs of the latest generation of handsets.

The former memory arm of AMD has produced ORNAND, a memory chip that can combine the ability to store huge amounts of data, like NAND flash, with the best attributes of NOR, which runs software quickly and is therefore ideal for mobile phones.

The company is after a market coveted by technology giants such as Samsung, who expect a huge increase in demand for such devices as more people buy high-end digital goods.

Spansion said its ORNAND chips stand ready to compete against NAND in the mobile market. It hopes companies will combine its NOR flash memory with ORNAND inside mobile phones. The first ORNAND product has a capacity of 1Gb, far smaller than the 16Gb NAND already available. But Spansion claims its ORNAND offers high read performance, and competitive pricing compared to NAND.

The company has already sent ORNAND chips to customers to test, but doesn't expect to have the product in mass production until mid-year.