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Apple Buys Israeli Flash Manufacturer

Lucas123 writes "According to published reports Apple is plunking down up to $500 million to purchase solid-state drive start-up Anobit Technologies. Even Israeli Prime Minister Benjamin Netanyahu tweeted about the deal congratulating Apple on its first acquisition in his country. Apple is planning to use the acquisition to set up to set up a semiconductor development center in Israel. Apple already uses NAND flash from Anobit in its iPhone, iPad and MacBook Air products, according to the reports."

36 of 114 comments (clear)

  1. Vertical Integration by MightyYar · · Score: 2

    Good to see some good ol' vertical integration still going on out there.

    --
    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    1. Re:Vertical Integration by jandrese · · Score: 4, Insightful

      Seems likely to me that Apple has had enough of crappy SSD controllers causing problems on its notebooks (especially the Air) and wants to finally get it done right. It could also be a competitive advantage to be the company with the best drive controllers.

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      I read the internet for the articles.
    2. Re:Vertical Integration by AlecC · · Score: 2

      Anobit is fabless. I can't find out who actually fabs for them, but they don't have a fab.

      --
      Consciousness is an illusion caused by an excess of self consciousness.
    3. Re:Vertical Integration by Em+Adespoton · · Score: 4, Insightful

      Yes, but then Apple will have to start building new fab plants as the tech becomes obsolete. There's a reason why most companies, like Apple, buy all their tech from elsewhere. It costs a bloody fortune to cycle plant tech, and the reason why we have so few players. It cost billions to build the buggers.

      Well, Apple has the billions to spend, and this way, they can take the technology in the direction they want to go, instead of having to go the way the SS industry decides to go. Fabulous decision, IMHO.

    4. Re:Vertical Integration by dwightk · · Score: 2

      They are already using this tech in the Air, and iOS devices

      (I read somewhere)

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      Like anyone can even know that
    5. Re:Vertical Integration by jandrese · · Score: 3, Interesting

      Poor bad block management causing slowdowns over time even if you have trim enabled. Also stuttering during write operations. It was a huge problem on the first generation Airs.

      --

      I read the internet for the articles.
    6. Re:Vertical Integration by Anonymous Coward · · Score: 2, Informative

      Poor bad block management causing slowdowns over time even if you have trim enabled. Also stuttering during write operations. It was a huge problem on the first generation Airs.

      The first generation Airs used hard drives, not SSDs. There was an SSD option, but it cost $1000 to go from an 80GB HDD to a 64GB SSD.

      Apple never used the SSD controllers which had stutter problems etc. They've always done a lot more storage qualification than your average bear, so they waited out the bad early problems and worked with vendors to get controller/firmware combos qualified before hopping in the pool.

      This acquisition is not about Macs. Apple doesn't need to make its own standalone high-performance SSD controller. Other companies are doing that job just fine for them. Apple has no value to add, and Apple doesn't want to become a chip supplier to other companies (their internal volumes aren't enough to justify developing their own chip just to ship in Macs).

      What it is about is the iPad and iPhone. These are highly integrated designs where most functions, including the flash storage controller, are integrated into one SoC, which Apple designs. That SoC contains a mix of Apple-owned and third party intellectual property cores, but Apple has been moving to bring more and more of that IP in house so that they get unique advantages. A more sophisticated flash storage controller core which lets them take advantage of lower grade flash media without compromising reliability is a good example.

      (where by lower grade I don't mean that they plan to ship crap, more that as flash memory gains capacity its reliability at remembering what you wrote to it is falling off a cliff, especially with 3 bits per cell MLC NAND, so where cellphones could get away with less sophisticated flash controllers before, they won't be able to in the future.)

  2. Re:Why 3rd degree removed from the task? by Anonymous Coward · · Score: 4, Funny

    Someone set up us the semicondutor development centre.

  3. Is this the trend? by stanlyb · · Score: 4, Interesting

    First they just opened a new factory in Texas, now in Israel, both out of China (in case you did not read the fine print), so, is this the new trend now? No more "cheap" chips? Or maybe they are becoming too expensive? Or maybe Apple knows something that we don't? Like, China is friend no more.....

    1. Re:Is this the trend? by cyfer2000 · · Score: 2

      Apple didn't open a factory in Texas, if you are talking about Samsung manufacturing chips for Apple in Texas, that plant was built in 1996.

      --
      There is a spark in every single flame bait point.
  4. IP Related move? by Guppy · · Score: 4, Insightful

    Coupled with their ARM CPU developments, I think Apple is attempting to remove their dependency on component makers such as Samsung (or at least gain some IP to use as leverage). I wouldn't be surprised if Apple starts some Flash-related patent wars in a few more years.

    1. Re:IP Related move? by BasilBrush · · Score: 4, Insightful

      I think you have a good point there. Samsung gets a lot of business from Apple as a supplier of flash chips. And yet at the same time they are ripping off Apple's device designs. Apple must be quite keen to ditch them as a supplier as soon as is possible.

  5. Huh? by Sycraft-fu · · Score: 4, Informative

    China doesn't tend to make things like chips. Those are almost all made somewhere else. China is more of a "final assembly" kind of space. You send them over the parts, they build the final product for cheap.

    1. Re:Huh? by derGoldstein · · Score: 4, Interesting

      Usually What's outsourced to China is anything that requires manual labor. If you need people to do it, and said people don't need to be engineers, then there's a good chance that you'd get the most bang for your buck in China.

      This is quickly changing, however. Chinese companies are establishing themselves as brands, and they themselves are using up the workforce. The pendulum is starting to shift the other way -- Chinese companies are setting up "beachheads" in Europe, and are even outsourcing jobs to cheaper countries.

      --
      Entomologically speaking, the spider is not a bug, it's a feature.
    2. Re:Huh? by Jeng · · Score: 4, Insightful

      Well, until we can re-legalize slavery in the U.S.

      That would never go over, with slaves you have to pay for their food, for their clothing, for their medical care, and for their housing.

      Paying someone minimum wage is way cheaper than slave labor.

      --
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    3. Re:Huh? by fotoflojoe · · Score: 5, Funny

      China doesn't tend to make things like chips. Those are almost all made somewhere else

      Yes it does. Look up SMIC, one of the larger semiconductor fab companies in the world, making other people's designs.

      Are those other people aware of that fact?

    4. Re:Huh? by AlecC · · Score: 2

      Since the other people are paying lots of money to do so, they certainly do. I work for a fabless semiconductor company, whose current chip is being manufactured by SMIC. It costs many hundreds of thousands of dollars to get them to make out chips.

      --
      Consciousness is an illusion caused by an excess of self consciousness.
  6. They are not a manufacterer by Old97 · · Score: 5, Informative

    They design, they don't fab. Just like PA Semi which Apple bought earlier. Apple designs products and product components but then outsources their manufacture. They aren't interested (so far) in owning fabrication plants. They can be more agile if they can switch manufacturers as their requirements change.

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    Very often, people confuse simple with simplistic. The nuance is lost on most. - Clement Mok
  7. Damn Apple and its unbridled success by jmcbain · · Score: 5, Funny

    As a typical open source advocated, I am shaking my fist in anger at how successful Apple is with its proprietary technology. Why are people giving that company money when they could be using a Linux machine and playing Tux Racer instead of stupid Angry Birds??? What makes me more mad is that I've been practicing being irate at Microsoft for so long that when Apple suddenly rushed to success overnight, it's made me angry that I did nothing with my life during the 2000s except comb my exquisite neckbeard and ponytail. Doesn't Apple know that it could make more money by giving away its software and hardware for free and then charge for services? SO ANGRY RIGHT NOW AT OTHER PEOPLE'S SUCCESS. GRRRR! Everyone on Slashdot is with me, right? All together now: GRRRR!

    1. Re:Damn Apple and its unbridled success by marklark · · Score: 4, Funny

      GRRRR! :^)

    2. Re:Damn Apple and its unbridled success by Anonymous Coward · · Score: 2, Insightful

      That's why I use OS X. /bin/bash FTW!

    3. Re:Damn Apple and its unbridled success by antdude · · Score: 2

      GIRRRL! :^D

      --
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    4. Re:Damn Apple and its unbridled success by wavedeform · · Score: 2

      I can't hear the replies, the whooshing sound it too loud.

  8. This might not be good by Tapewolf · · Score: 2

    Weren't Anobit the folks who developed the technology to make MLC flash work reliably? That's going to become critically important as people increase the density of the arrays (for SSD drives etc) - and from the way Apple has been behaving recently, I'm not sure they'd be willing to share it with Intel, Sandisk and so on.

    1. Re:This might not be good by the+person+standing · · Score: 2

      Anobit also owns a bunch of patents which might fit well for a new bunch of patent lawsuits

  9. At least... by Anonymous Coward · · Score: 5, Funny

    At least they bought an Israeli Flash company and not Adobe, amirite?

    (Thank you, I'm here all week.)

    1. Re:At least... by rubycodez · · Score: 2

      wouldn't it be cheaper to hire domestic flashers from the ranks of the homeless and give them overcoats or raincoats? or do they want to insure their flashers all have circumcised peckers when they expose themselves?

  10. More patents by james_van · · Score: 4, Insightful

    Good move on Apple's part- buy the developer and retain the patents for anything new and novel coming out of there, but continue to outsource the fabrication. It's everything that was good about vertical integration, minus the bad (costs of retooling, slow response times). Couple this with locked in deals with manufacturers and Apple is setting itself up for an even stronger market domination. Say what you want about them (evil, controlling, walled-garden, doo-doo heads), they're not stupid over there. And keep in mind, the company is now run by the guy who was in charge of the supply chain. We're gonna be hearing alot more stories like this in the near future. Love them or hate them, Apple is running their business very very right.

  11. but.... by sirber · · Score: 2

    Apple doesn't support Flash! ;)

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    Be or ben't
  12. Misread the subject by wintercolby · · Score: 2

    I don't know why, but I misread the subject as:

    Apple Buys Israeli Flesh Manufacturer

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    Most ignorance is vincible ignorance. We don't know because we don't want to know. --Aldous Huxley
  13. Re:Anobit doesn't make NAND flash by jpapon · · Score: 2

    Apple uses NAND which sues some of this technology

    Freudian slip much? ;)

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    -- Let us endeavor so to live that when we pass even the undertaker shall be sorry. -- M. Twain
  14. Re:Further soiling Apple's name by WorldPiece · · Score: 4, Informative

    Dear Mr. Coward, Where do you get this information? As an Israeli, who has served in the army, who votes in democratic elections and is able to criticize his government freely, who shares his cubicle at work with an Israeli Arab, who also enjoys civil rights and liberties and votes for his representatives, and as a Jew who carries the stain of history on his family's story, please tell me where is this ethnic cleansing you speak of? There is nothing I would rather wish for than the end of the occupation of the west bank, especially as a reserve soldier, but if it was so simple it would have been over a long time ago. There is no such thing as an evil nation, that's just racist. We are people. When I get called for duty, I spend most my time riding in a jeep in which the commander is a lawyer, the driver is a youth council, the medic is a magician, and I'm an electronic engineer. This isn't an ego bunch, and know for a fact that there isn't an army in the world that shows as much restraint as we do. And back to the topic, from a tech company perspective, its smart to set up a development center in Israel. It worked for Intel, IBM, TI, Google, Microsoft, HP and the list goes on.

  15. No they aren't by Sycraft-fu · · Score: 2

    They are the biggest in China, but that isn't saying much. You want big? Look at TSMC, who's IP SMIC ripped off. It's also only older tech. 45nm is the smallest they do. That's fine, but not for cutting edge products.

    Plus while there's a decent market in fabs-for-order, there's a massive market in semi-conductor companies that fab their own stuff. Intel, IBM, TI, Samsung, and so on all fab their own stuff in whole or in part.

    China is not big in the chips industry, at all. They do some, but nothing compared to the US or Taiwan.

  16. Re:Further soiling Apple's name by pdxer · · Score: 2

    Investing in a regime that has WMDs, with a long history of ethnic cleansing, and brutal racism, doesn't seem like a good move to enhance one's reputation.

    Doesn't it get boring jerking that same knee all the time?

    Good thing they didn't buy a company based in the U.S., Russia, China, Britain, France, or India...all of which fit your criteria of having WMDs and a past that includes racism.

    Clearly, they shouldn't buy companies owned by humans.

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  17. Re:STEVE IS ROLLING IN HIS GRAVE. by Bucky24 · · Score: 2

    More likely the coffin is designed to use his spinning body as a gyro...

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    All the world's a CPU, and all the men and women merely AI agents
  18. Re:Further soiling Apple's name by WorldPiece · · Score: 2, Insightful

    You swing around the phrase "ethnic cleansing" as a political slogan while ignoring its content. I can accept 'occupation' as a description, but there is a significant lack of cleansing involved. Israel receives disproportional bad press, whilst so many terrible bad things go on on a daily basis in the world with literally no coverage at all. And again, you saying Israel is just racist is the most racist thing of all. The fact that an Israeli newspaper has the sort of article you link to proves that. Things aren't black and white, there is much beneath the surface, too much to over simplify.