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Samsung, Apple end plant talks

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Oct 17,2005
Samsung Electronics Co., the world’s second-largest semiconductor maker, said it failed to reach an agreement to build a chip factory with Apple Computer Inc., which uses the Korean company’s chips in its iPod music players. Talks between Samsung and Apple early this year about jointly building a flash memory chip plant didn’t go beyond the “preliminary”' stage and are now discontinued, Samsung spokeswoman Cho Sung-in said from Seoul, confirming local media reports. She declined to comment further on the issue. Apple approached Samsung about investing in a 4 trillion won ($3.8 billion) flash memory chip factory venture, the Korea Economic Daily reported on Saturday, citing an unidentified Samsung official. Negotiations broke down after criticism about Samsung by local politicians and civil rights groups, the newspaper cited the official as saying. Samsung Group has been at the center of a series of scandals in Korea involving its executives since July. Those include taped conversations between Samsung executives that sparked allegations of illicit political donations, and the conviction of two Samsung executives for helping Samsung Chairman Lee Kun-hee’s children buy shares in the holding company at below-market prices. Apple is in talks with another semiconductor company about building a chip plant in the United States, according to the Korea Economic Daily report.


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