Semiconductor Shares Jump on Intel Price Hike

Intel Corp. said Monday that it planned to raise the price of flash memory chips as much as 40%, in a sign that demand may be growing for the chips used in cellular phones and other devices.

News of the price hike helped boost not only Intel’s share price but also that of rival flash makers Advanced Micro Devices Inc. and Atmel Corp.

Intel’s move to increase prices starting Jan. 1 is driven by strong demand by makers of next-generation cell phones that have color screens and other high-end features, spokesman Tom Beermann said.

Flash memory makes up as much as 30% of AMD’s revenue. It accounts for about 10% of Intel’s sales.

Shares of AMD rose $1.09, or 15.9%, to $7.95 in Monday trading on the New York Stock Exchange.

Atmel shares were up $1.24, or 44%, to $4.05 on the Nasdaq Stock Market.

Shares of Santa Clara, Calif.-based Intel jumped 43 cents, to $20.48, also in Nasdaq trading.