Feeds

Samsung set to buy SanDisk?

Checking out 'various opportunities'

Remote control for virtualized desktops

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.

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
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.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.