Samsung May Sell NAND Flash to Sony

By Geoff Duncan Published December 26, 2005

Samsung said on Monday that it is in talks with consumer electronics giant Sony to sell the company NAND flash memory chips. The news drove Samsung shares to an all-time high as investors speculated on the value and term of possible contract. Samsung’s statement came after The Korea Economic Daily reported that an unnamed Samsung official said Sony would likely sign a contract for NAND memory in the first half of 2006, and the total value would likely exceed that of Samsung’s recent deal with Apple Computer to supply NAND memory through 2010.

Samsung currently manufacturers more than half the NAND flash memory supply worldwide. A deal with a consumer electronics maker like Sony would likely secure Samsung’s position in the market for the remainder of the decade.

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NAND flash memory retains its contents even when power to the devices using it is shut off, making it invaluable for portable electronics such as digital cameras, camcorders, mobile phones, and music players. Chipmakers Micron and Intel announced last month they planned to launch a new company to manufacture NAND memory, and speculated as the density of flash memory increases and costs come down, flash memory would eventually replace hard disks as primary storage in portable and even some desktop computers.

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Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…

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