Samsung Considers Bid For SanDisk
Samsung is looking to strengthen their digital memory storage line with a possible purchase of SanDisk. SanDisk is currently the #1 supplier of solid state flash memory, world wide [such as Secure Digital, miniSD, microSD and many more]. Samsung is the top producer of flash memory chips.
Avi Cohen of Avian Securities said it was an “unlikely prospect” due to SanDisk being unwilling to sell at the bottom of the cycle, and Samsung becoming a direct competitor to many of its customers and regulatory concerns. “Regulators in the US, Korea and Europe among others will likely have issue with one player controlling north of 50 per cent of NAND [Flash memory] supply,” he said.Another option is Samsung reducing it’s royalty license to SanDisk to gain synergy with the top seller, reduce SanDisk’s bottom line and secure channel distribution of flash memory.
However if a deal goes ahead, it could block efforts by Samsung rivals Toshiba and Hynix Semiconductor to topple Samsung’s market leadership. Toshiba runs joint production lines with SanDisk and Hynix is also conducting joint re-search with the US group. Samsung controls 42.3 per cent of the NAND flash memory market, trailed by Toshiba with 27.5 per cent and Hynix with 13.4 per cent, says market researcher iSuppli.Source:Â Financial Times.
Tags: MicroSD, MiniSD, samsung, sandisk, Secure Digital
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Mark McCrosky
Kicking around in technology since 2002. I like to write about technology products and ideas, but at the consumer level understanding. Some tech, but not too techie.
Posting on Quora.com as well.