Samsung, LG Gear Up for Aggressive M&A Korea's Patent Royalties Increase 10-Fold in 10 Years Samsung Buys Israeli Image Sensor Maker LG's U.S. Subsidiary Proves Golden Goose After All LG Display to Cut LCD Output Businesses Favor M&As Over Tangible Assets

Memory cards are used for storage in digital cameras and MP3 players. U.S.-based SanDisk, founded in 1988, holds over 1,000 patents, earning around US$500 million in royalties a year from NAND flash memory makers like Samsung Electronics and Hynix.

However, due to a recent slump in the semiconductor industry and uncertain prospects, its market capitalization fell to W3.5 trillion (US$1=W1,121), one-third of what it was last year. By acquiring SanDisk, Samsung expects to save on royalties and to expand its business in next-generation flash memory storage Solid State Drive.

(englishnews@chosun.com )