At the Flash Memory Summit today in Santa Clara, Sandisk CEO, Eli Harari, denied plans to set up a flash-memory-chip factory with South Korean Hynix Semiconductor. Contradicting an earlier report from the Wall Street Journal published last Monday and on Dow Jones Newswires on Thursday, Aug 3rd. German publisher Heise speculated further and said the two companies will build their new plant in Switzerland!

"There was a misquote in the interview we had with the Wall Street Journal. We didn't indicate that we had anything new to say about this [signed memorandum of understanding with Hynix that outlined a possible joint venture]", said Sandisk spokesman, Mike Wong.

And frusted Eli Harari to add:

"And now I have to deny and not deny that we are starting a production line in Switzerland... All I said was that we are discussing a joint venture. I didn't say we have agreed to anything. We have a licensing agreement that also involves a manufacturing supply agreement and potentially could involve a joint-development and joint-manufacturing. Demand is the key driver".

Wonder how this "soon-to-be" manufacturing deal with Hynix will affect Sandisk cooperation with Toshiba. But what might be going for Sandisk is that they hold most of the patents for the flash memory... I'm sure it helps in the negotiating table ;-)