Apple to buy flash memory chips from Hynix for iPod

Apple to buy flash memory chips from Hynix for iPod

Apple Computer is the world’s largest maker of digital music player and sells massive number of Apple iPod digital music and video player. This means that the company is also one of the largest purchasers of flash memory chips, which are used for storage on these players.

Hynix has now claimed that Apple has agreed to purchase at least 20 percent of Hynix Semiconductor Inc.’s NAND flash memory chips until 2010. Apple had already signed on an agreement to buy 40 million gigabytes of the chips this year from Hynix in the month of December.

Now, they would be increasing this order by around 180 percent a year until the end of the decade. However, some parts of this agreement are non binding which might give Apple a chance to escape out if some problems arise.

This news helped Hynix gain in the stock market as their share price gained as much as 4.6 percent.