Samsung, Hynix in chip supply talks with Apple

SEOUL (Reuters) - South Korea's Samsung Electronics and Hynix Semiconductor are in talks with Apple Computer Inc on long-term deals to supply NAND-flash memory chips, the two local firms said separately on Wednesday.

The Korea Exchange had asked both companies earlier in the day to clarify speculation about the negotiations.

"Samsung Electronics is undertaking negotiations with Apple Computer of the United States on a long-term deal to supply NAND-flash memories, and will release more details once the deal is finalised," the world's largest memory chip maker said in a filing to the exchange.

Hynix, the world's number two memory chip maker, was in talks on a similar deal, it said in a separate filing.

Expectations for healthy demand in 2006 for NAND-flash memory chips, used in hot-selling mobile phones and MP3 players, have lifted the outlook for chip makers, contributing to a rally in the sector this month.

Analysts previously said Apple had booked as much as 40 percent of Samsung's NAND output for the second half of 2005 to support production of its iPod MP3 music players.

Samsung is the world's top maker of NAND flash memory.

Additional reporting by Rhee So-eui.