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Tuesday, November 15, 2005, 08:00 am PT (11:00 am ET)

Apple and Samsung negotiating mega flash memory deal

By the end of November, Samsung is expected to sign a long-term, several hundred million dollar contract with Apple to supply flash chips for its iPod digital music players, Korean news provider edaily reported on its website on Tuesday.

The report also echoed a research note from earlier in the week by InSpectrum, which said the iPod maker is looking to add South Korea-based Hynix Semiconductor as a third supplier of low-density NAND flash memory.

Citing industry sources, the report said the contract is part of Apple's efforts to secure more flash memory chips, which are in tight supply with the holiday shopping season fast approaching.

Earlier this year, Apple dropped a $3.8 billion joint investment plan with Samsung following reports that both companies were facing investigation by the South Korean government over potential antitrust violations.