Acer Semiconductor Manufacturing Inc has announced that it will start volume production of Flash memory chips by the end of the year. In common with other major dynamic random access memory (DRAM) manufacturers such as Toshiba Corp (CI No 3,494) and Fujitsu Corp, Acer Semiconductor is turning to Flash memory because of the higher margins Flash chips offer in comparison with the severely depressed DRAM market. According to the Wall Street Journal, one of the major customers for the Flash chips could be PC manufacturing arm of the giant Acer Group, which is readying the stripped down ‘X Computer’ (CI No 3,4328) – a low end, $199 machine.