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Samsung Talks to Sony About Flash Memory Deal

Monday, December 26th, 2005 at 2:30 PM - by Staff

Samsung Electronics is currently discussing a potential large flash memory deal with Sony. The latter is looking for chips with 8GB or more storage as it gears up to release new MP3 players next year and continue its battle with Apple, which already has a significant flash memory contract with Samsung.

Writing for MarketWatch, Song Jung-a quoted Korean analyst Yoon Hyuk-jin as saying: "It's a win-win deal for both sides because Sony can get a stable supply of NAND [flash] chips at a cheaper price [by bulk ordering] and Samsung will have another big buyer."

In a filing with the Korean stock exchange, Samsung said that it is "considering signing contracts to supply NAND flash chips to major companies, including Sony, but nothing has been decided yet."

Mr. Jung-a cited a Korean newspaper report that said Samsung and Sony will likely sign the deal during the first half of next year, with the contract calling for Samsung to sell Sony over 20% of its flash output.

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