News
 

Bookmark and Share

(0) 

Seagate Technology has publicly revealed that it would enter the market of flash-based solid-state drives in 2009, but target only enterprise customers initially. Despite of relatively low volumes of flash the company is going to need next year, some analysts believe that the hard drive maker is looking forward to acquire a manufacturer of flash memory, or a stake in such a company.

One of the expectations is that Seagate Technology, currently the world’s top maker of hard disk drives, intends to acquire Intel’s stake in IM Flash, a joint-venture between Intel Corp. and Micron Corp. The move would allow Seagate to gain capacity to produce flash, but Intel would also like to have certain portion of IM’s manufacturing capacity guaranteed going forward.

“We believe the joint venture is unprofitable for Intel and it would be logical for it to exit the partnership if Intel were able to maintain some guaranteed capacity. Seagate would gain the capacity it needs and Intel would have a way out of its moneylosing venture while still being a player in the solid-state disk market,” said Daniel Amir, an analyst at Lazard Capital Markets, in a report, according to EETimes web-site.

Avi Cohen, an analyst at Avian Securities, said that Seagate Technology had already negotiated about flash production capacities with Hynix Semiconductor, though, without luck, reports Barron's Online. Besides, Mr. Cohen speculated that Seagate, which market capitalization is $9.52 billion and which has $1.28 billion in cash, could acquire Sandisk, which capitalization is $4.68 billion and who has $1.85 billion in cash.

Even though in the long term Seagate might be interested in securing its own manufacturing capacities on the flash market, making huge investments into risky flash business before even entering the market of SSDs may not be a way that the hard drive maker chooses.

Seagate did not comment on the news-story.

Discussion

Comments currently: 0

Add your Comment




Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month