Nanochip, a Fremont, Ca. maker of Flash memory chips used in storage devices such as USB flash drives, has raised a $4.8 million in an appendage to the company’s third round of funding started last year.

It’s products are known as NAND chips (see more here for definition). VentureWire reported the news this morning (sub required).

Both Intel Capital and JK&B Capital, which particated in the third round last year, participated this time. Nanochip said it plans to raise $5 million more. From VentureWire:

The fabless semiconductor company is developing a technique for making NAND flash memory chips that, unlike all other chips of that type, is not dependant on lithography. Nanochip’s technology will be able to make chips with a 10nm to 20nm domain size, compared to the 70nm NAND chips that are currently offered by Samsung Electronics Co. and Toshiba Corp., the market leaders, Knight said. Nanochip’s smaller product will be able to hold more memory on the same amount of space.

Nanochip has been working away for more than a decade, has now absorbed $38 million in capital, and says it will release its product sometime in late 2009.