SanDisk Maybe Taken Over By Samsung

Milpitas, CA (AHN) - South Korea's Samsung Electronics Co. is planning to buy U.S. computer memory card maker SanDisk Corp., reports said Friday.

The East Bay Business Times reported, citing analysts, that the planned acquisition will cut Samsung's royalty fees to Sandisk as well as gain strong control over the global flash memory market.

Samsung compensates SanDisk over $500 million in royalties involving flash memory patents. Sandisk is the global leader in flash storage card products.

Samsung and SanDisk did not confirmed or denied news reports on the alleged deal.

"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," SanDisk said in a statement.

Samsung, which supplies NAND flash memory chips to SanDisk, is the world's largest maker of NAND and DRAM chips. NAND flash memory is used in digital devices such as cameras and music players, while DRAM chips are used mostly in personal computers.