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Seagate will buy SanDisk to build SSD?
Unverified reports Seagate expects to acquire production of NAND flash memory. This move looks reasonable given the fact that the company plans to come to grips with the release of solid-state drives (SSD).
According to some analysts, the only way to get real profits from selling SSDs is to have a reliable source of NAND chips in the form of in-house production or a share in a co-production.
This is exactly the way Intel went. Its SSDs, currently undergoing internal testing, are made from components manufactured by a joint venture between Micron and Intel – IM Flash Technologies. Lazard analyst Daniel Amir suggests Seagate is looking to buy out Intel’s 49% stake in the joint venture. According to a very rough estimate, it will cost Seagate about 1-2 billion. Doll.
Another analyst, Avi Cohen of Avian Securities, believes that an alternative option for Seagate could be the purchase of SanDisk. SanDisk is currently the source of the lowest-cost NAND modules so far, Cohen said, adding to the company’s appeal in Seagate’s eyes.
Anyway, we recall, Seagate promised to release its first SSD next year.
Source: Daily Tech