Samsung Electronics and SanDisk Corp. renew agreement for seven years

(This entry was originally uploaded in May 28, 2009)

On May 27, 2008, Samsung renewed its patent deal with San Disk Corporation, the largest flash memory chip producer in USA, for another seven years. Last year, Samsung Electronics wanted to acquire San Disk Corp. for $5.9 billion. Had that acquisition taken place, Samsung would not have to renew its agreement and gained larger control over the flash memory chip market. Anyway, Samsung and SanDisk renewed two major agreements. First, Samsung and SanDisk renewed the cross-licensing “of certain semiconductor patents.” Now, the two companies can use each others’ patents to produce cell flash memory and flash storage systems. Second, both companies also signed an agreement that enables SanDisk to produce a specific portion of Samsung’s flash memory cards. According to SanDisk founder Eli Harari, the two agreements would assure the market growth for both companies. The new agreement will go into effect on August 14, 2009. Till then, the current agreement between two companies will continue.

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