Samsung renews memory chip license deal with SanDisk

SEOUL, May 28 (Yonhap) -- Samsung Electronics Co., the world's largest maker of
computer memory chips, said Thursday it has agreed with SanDisk Corp. to renew
their flash memory chip licensing deal.

The renewed agreement calls for Samsung Electronics to pay SanDisk about half the
current royalties for the U.S. company's patent on NAND flash memory chips used
in digital cameras.
Samsung Electronics said it also signed a deal with SanDisk, guaranteeing the
U.S. company a portion of its flash memory production output.
The seven-year agreements will become effective when their current licensing and
supply agreements expire on Aug. 14, 2009, Samsung Electronics said.
"The renewal agreements enable Samsung and SanDisk to each focus their energies
on restoring flash market growth," said Kwon Oh-hyun, president for Samsung
Electronics's semiconductor business.
SanDisk owns a number of patents related to flash memory chips, and Samsung has
paid some $352 million annually in patent fees to the U.S. company.
Last October, Samsung Electronics scrapped its bid to purchase SanDisk due to
global financial turmoil and stalled negotiations.
ygkim@yna.co.kr
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