Intel has developed what it claims is the industry's first halogen-free packaging for its Flash memory for cellular phones.

The chip giant had been using halogen as a flame retardant in its chip mouldings, solder masks and the core substrate.

Halogen reduces the ability to recycle devices and is harmful to the Earth's ozone layer when released into the atmosphere.

Eliminating the substance is not required by law, but Intel did so following customer requests. Sony Ericsson will be one of the first device makers to use the chips in its phones.

Glen Hawk, vice president for the Flash memory group at Intel, claimed in a meeting with reporters at the company's headquarters that the move is evidence of Intel's leadership in memory packaging.

The chipmaker's Flash division is struggling financially as a result of large investments and rapidly dropping prices.

Intel is betting that its technology investments will allow it to gain an edge on the competition. The firm also plans to more closely integrate research with the PC and server markets in which it has leading market share positions.