Kingston denies takeover rumours

MEMORY MAKER Kingston Technology has denied that it's looking to acquire its outsourcing partners Panram and OSE.

Lately the rumour mill has been abuzz with claims that a deal was in the works between Kingston and Panram and OSE. Panram makes DRAM modules for Kingston, whereas OSE has extended its contract services for its US-based customer to cover flash cards and drives.

Kingston said that it is planning to increase its outsourcing to Panram and OSE rather than expand its in-house assembling capacity. However it has officially denied that this is a precursor to acquiring either or both of the two suppliers.

Such a deal would make sense as Kingston expects to see its revenues generated from Asia hit a billion dollars this year. However it seems clear that takeovers are not on the table for now. µ