By Don Clark 

SAN FRANCISCO-- Intel Corp. and Micron Technology Inc. say they developed a new breed of memory chips that could bring dramatic performance gains to computers, smartphones and other kinds of high-tech products.

The companies say chips they plan to sell next year will be up to 1,000 times faster than the NAND flash memory chips now used in most mobile devices, while storing 10 times more data than dynamic random access memory, or DRAM, chips that are another mainstay of electronics hardware.

Their technology--dubbed 3D Xpoint--doesn't quite match the speed of DRAM. But unlike those chips--and like NAND flash memory--the new chips will retain data even after they're powered off, the companies say.

Intel and Micron executives predict the new chips' speed will spur new kinds of applications and greatly benefit others, particularly those that rely on finding patterns in large amounts of data, like voice recognition, financial fraud detection and genomics.

"It truly is revolutionary," said Mark Durcan, Micron's chief executive, at an event here Tuesday.

But the importance--and originality--of the technology may be hotly debated. Plenty of other companies have claimed significant advances in memory chips in recent years.

Sylvain Dubois, vice president of strategic marketing and business development at startup Crossbar Inc., said Intel and Micron seem to be emulating elements of its resistive RAM technology. "It sounds very much like what we have," he said.

Others, like Everspin Technologies Inc., believe they have a head start in delivering DRAM-class speed on chips that provide persistent data storage.

Intel, the Silicon Valley giant better known for microprocessor chips, has collaborated with Micron on NAND technology since 2006. Micron, a Boise, Idaho company that also makes DRAMs, recently has been the focus of a $23 billion takeover offer prepared by the Chinese state-owned company Tsinghua Unigroup Ltd. Micron has declined to comment on the offer.

Besides the financial attractions of the memory market, which researchers at IDC assess at $78.5 billion this year, manufacturers have been searching for breakthroughs because of new technical hurdles to the conventional way of boosting storage capacity by shrinking the size of circuitry on chips. Makers of NAND chips, including Intel and Micron, have said they would stop pursuing that tactic in favor of stacking layers of circuitry in three dimensions.

Intel and Micron aren't revealing some technology details of 3D Xpoint, including key materials they are using. But they described what they said is a unique way to store data, using vertical columns of circuitry linked by a crisscross grid of microscopic wires.

Among other things, the approach allows cells that store data to be managed individually; NAND flash chips require entire blocks of cells to be erased before a single bit is stored, slowing performance.

"This is something many people thought was impossible," said Rob Crooke, an Intel senior vice president.

The companies plan initially to manufacture two-layer chips that store 128 gigabits of data, matching some existing NAND chips. They plan to boost capacities later by stacking more circuitry.

Analysts attending the event Tuesday said it would take time for hardware designers to decide how, or whether, to use the technology. They could make equivalents of the solid-state drives that currently are made using NAND flash chips. Existing connections for those devices would allow only a tenfold speedup over existing products, Intel and Micron said.

More gains in speed can be made as those links are improved, or if the chips are connected directly to microprocessors, as DRAMs are. Computer designers theoretically could use the new chips alone, but Micron and Intel think most systems will combine a variety of memory chips.

One potential hurdle is the fact that Intel and Micron plan to keep sole control over the technology, starting production of samples later this year in a jointly owned factory in Lehi, Utah. Chip customers tend to prefer technology that comes from multiple suppliers, reducing the risk if one product line faces technical or manufacturing problems.

But Micron and Intel are among the few companies with the manufacturing prowess to reassure customers, said Bob O'Donnell, an analyst at Technalysis Research, making the new chips more than a research project. "That, to me, is the big story," he said.

Write to Don Clark at don.clark@wsj.com

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