Intel and its partner Micron Technology announced on Monday that they’ve begun to mass-produce their 34 nanometer NAND flash memory chip, which can store 4GB of memory on one core, and eight cores per layer totaling 64GB on a two-layer stack.

This is possible thanks to the 34nm manufacturing process which lets the companies shrink these chip components and thus obtain more memory in the same space. The product fits inside a standard 48-lead thin small-outline package (TSOP), a type of surface-mount integrated-circuit package that one can find in MP3 players, mobile phones and other devices where miniaturization is of the essence.

"The tiny 34-nm, 32-GB chip enables our customers to easily increase their NAND storage capacity for a number of consumer and computing products," said Micron memory group VP Brian Shirley, in a statement.

These chips are made on 300-mm wafers, smaller than a thumbnail. The memory built with them will see use in digital cameras, personal music players and digital camcorders. It can also increase the capacity of solid-state drives, according to the companies.

Intel and Micron did not say when products from device makers would start putting the new memory to use. The companies did say however that they are releasing more products in the 34nm fabrication process early next year.

Due to a surge in supply, demand and therefore price has dropped in the memory market; the development put a dent in manufacturers’ revenue. Micron announced last month that it would downscale production of memory chips and lay off 15% of its workforce.

The company also stated that IM Flash Technologies, its joint venture with Intel, will no longer make chips at Micron’s Boise, Idaho plant. Market researcher iSuppli reduced the 2008 forecast for global revenue growth in the NAND memory market by two thirds. The reason is as usual less consumer spending due to the current situation of the economy.