SanDisk said it has reached an agreement to purchase Silicon Valley neighbor Matrix Semiconductor for approximately $250 million in stock and $12 million cash.
Privately held Matrix has been developing and supplying 3-D integrated circuit one-time programmable (OTP) technology since 1998.
Matrix 3-D Memory is used for storage applications that do not require multiple rewrites and where low cost is a major consideration for the creation of video games, music and other content.
“We have high regard for the Matrix team and welcome them to SanDisk,” said Eli Harari, CEO of SanDisk in a statement. “Use of the Matrix 3-D Memory extends beyond video games and hopefully will play an important role in content distribution such as incorporation in our recently launched Gruvi cards for secure distribution of premium music titles and other preloaded content in handsets.”
Because OTP technology is not rewritable once programmed, it complements rather than directly competes with SanDisk’s own flash memory products, which are rewritable but more costly.
Matrix said it has over 100 U.S. issued patents in 3-D integrated circuit Technology. SanDisk intends to support and sell Matrix’s 3D OTP products through its various sales channels.
SanDisk is the original inventor of flash storage cards and said it’s the world’s largest supplier of flash data storage card products.
Matrix is the creator and developer of the first three-dimensional integrated circuits. Its Matrix 3-D Memory is a low cost, high density line of permanent, one time programmable, non-volatile memory that is compatible with existing standards.