A major consolidation of the flash-memory market may be in the works. Samsung, the world’s largest memory manufacturer, says it may assemble an offer for SanDisk, which makes flash-memory chips. SanDisk is valued at $3.2 billion.

The flash-memory space has been under extreme pressure with prices falling. The deal would allow Samsung to eliminate its costs to license SanDisk technology.

“We are looking at various opportunities regarding SanDisk, but nothing has been decided yet,” Samsung spokesperson James Chung said in response

Samsung additionally identified an acquisition of SanDisk as a possibility in a regulatory filing. SanDisk shares spiked up 24 percent on Friday.

Defeat for Toshiba

whether the purchase goes forward, it could be a major strategic defeat for Samsung competitor Toshiba, analysts said. Toshiba is planning to double its flash-chip production in a partnership with SanDisk, so Samsung’s acquisition could squeeze Toshiba, which trails Samsung.

“Samsung buying SanDisk would mean big […]

Orginal post by dhiram