Samsung and SanDisk are apparently in talks over a possible takeover, with the Koreans looking to buy the market-leading memory card manufacturer.
According to an online Korean newspaper, Samsung is aiming to take over the company, though neither party will confirm or deny the story.
"We are considering various opportunities regarding SanDisk but nothing has been decided," Samsung spokesman James Chung said.
"SanDisk periodically has conversations with multiple parties, including Samsung, regarding a variety of potential business opportunities," SanDisk said in released statement.
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"We evaluate all of these opportunities, but maintain a policy of not commenting on market rumours or speculation."
Samsung has long been a supplier of NAND flash memory to SanDisk, the material used to store the info on the memory card.
Samsung is heavily investing in flash memory at the moment, as it sees it as the obvious successor to the HDDs that are used in computers and hand held devices.