Feeds

Samsung set to buy SanDisk?

Checking out 'various opportunities'

Providing a secure and efficient Helpdesk

The flash memory market is abuzz as Korean news sources, along with Reuters and Bloomberg, are reporting that Samsung Electronics is thinking about buying SanDisk.

A Samsung spokesperson, James Chung, said: "We are considering various opportunities regarding SanDisk but nothing has been decided.''

SanDisk is uninformative, a spokesperson aying: "SanDisk periodically has conversations with multiple parties, including Samsung, regarding a variety of potential business opportunities. We evaluate all of these opportunities, but maintain a policy of not commenting on market rumors or speculation." Mud could be clearer.

Korea-based Samsung is the world's largest NAND Flash memory maker and it pays KRW400bn ($351m) each year in royalties to SanDisk. The Asus Eee PC and the Apple iPhone, for example, use Samsung flash chips.

SanDisk owns Flash memory patents and makes Flash-based MP3 players, memory cards and solid-state drives (SSDs). It posted poor results at the end of July, with an unexpected Q2 loss of $68m compared to a $28m profit in the year-ago quarter.

There is an over-supply in the NAND Flash market with a product glut causing price falls. The firm has slowed its production growth plans. SanDisk boss Eli Hariri has said that current SSD notebook use is limited by Windows' inability to use SSDs sensibly. He also reckons that ten or so mega-fabs could be needed in the next few years to satisfy potential SSD demand as higher-capacity, multi-level cell (MLC) flash drives prices down, and as flash controllers drive write endurance cycles up.

SanDisk partners Toshiba in SAN production facilities and this would mean that Samsung would gain access to more NAND Flash output as well as saving the royalty money it pays SanDisk, if an acquisition attempt is made and succeeds.

Last month, there was speculation that Seagate might buy SanDisk to help its planned entry into the SSD supply market next year.

SanDisk is denying any knowledge of Samsung's acquisitive thoughts, suggesting that any takeover would be aggressive unless oiled by large amounts of cash.

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.