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Flash Memory News


cnet news

May 27, 2009 7:39 AM PDT
by LanceWhitney


SanDisk,Samsung renew flash memory pacts


In the midst of a tight market for flash memory, SanDisk andSamsung Electronics have renewed two key agreements that bothcompanies expect will strengthen their positions.
In the first of the two deals, SanDisk and Samsung announcedon Wednesday an agreement to renew the cross-licensing of certainsemiconductor patents. The agreement means that each company hasthe right to use each other's patents in producing cell flashmemory and flash storage systems, such as solid-state drives. Itdoes not include patents related to 3-D memory, a new technologythat could eventually replace traditional flash memory in portabledevices.
 
Both companies also signed a flash memory agreement thatguarantees a specific portion of Samsung's flash memory chip outputto SanDisk.
 
The deals will "enable both parties to focus on the growthmarkets at hand," Eli Harari, chairman and chief executive officerof SanDisk, said in a statement. "We are excited about ouropportunities in mobile, computing and consumer flash storagemarkets. Furthermore, continued access to Samsung's flash capacityunder competitive terms gives us greater flexibility in managingour future capital expenditures for captive capacity."
 
Samsung also expressed faith in the agreement. "The renewalagreements enable Samsung and SanDisk to each focus their energieson restoring flash market growth," Oh-Hyun Kwon, president of thesemiconductor business at Samsung, said in a statement. "It isclear that these renewal agreements are aimed at strengthening theon-going business relationship between Samsung and SanDisk, and weare pleased that the two companies have worked hard to achieve asignificantly improved balance on the patent license."
 
The new agreements go into effect when the currentcross-license and supply agreements expire on August 14 and willrun for seven years from that date.


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