Apple signs flash supply agreements; ships 30 millionth iPod [updated]
Further solidifying the iPod’s future, Apple today announced that it has reached long-term agreements with Hynix, Intel, Micron, Samsung and Toshiba to secure a large supply of NAND flash memory through 2010. Apple said it will prepay a total of $1.25 billion for flash memory components during the next three months. “We want to be able to produce as many of our wildly popular iPods as the market demands,” said Apple CEO Steve Jobs.
Apple also subtly announced that it has now shipped over 30 million iPods.
Update: In a separate announcement, Intel and Micron Technology said that they will be launching a joint venture to produce NAND flash memory, with Apple prepaying $500 million to secure its place in line for the chips.
“Intel will own 49 percent of the new company, IM Flash Technologies, with the remaining controlling stake held by Micron,” reports CNET News.com. “Intel and Micron will each initially contribute $1.2 billion to building plants in Idaho, Utah and Virginia, with plans to add another $1.4 billion each over the next three years. The joint venture is expected to be finalized by the end of the year.”
Another related story notes that Samsung plans to invest about $615 million to build a new production facility to meet rising demand for its NAND flash and DRAM chips. The new plant will be based in Hwaseong, south of Seoul, and is expected to open in the first half of 2006.
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