updated 12/26/2005 5:18:27 PM ET 2005-12-26T22:18:27

Samsung Electronics Co., the world's largest memory chip maker, confirmed Monday that it is in talks with Sony Corp. to supply NAND flash memory chips.

"We are talking to major companies including Sony to supply our NAND flash chips, but no details have been decided yet," Samsung spokeswoman Lee Eun-Hee said.

Earlier Monday, the Korea Economic Daily reported that the chip maker is negotiating with Sony to provide its NAND flash chips on a long-term basis, citing an unnamed company official.

Sony is seeking to secure NAND flash chips of eight gigabytes or higher, and the order amount is expected to be more than a fifth of Samsung's total NAND flash output from next year, according to the report.

The two sides are expected to sign a contract in the first half of 2006, the paper said.

In November, Apple Computer Inc. entered into a $500 million long-term contract for Samsung to supply flash memory chips through 2010.

Copyright 2005 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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