Buying memory

is to acquire Santa Clara, CA-based

, a privately held company that has been developing and supplying 3D integrated circuit one-time programmable (OTP) technology since its inception in 1998.

The purchase price of around $250 million, consists of approximately $238 million of newly issued SanDisk shares and equity incentives and approximately $12 million of cash.

Matrix Semiconductor's Matrix 3D Memory is used for storage applications that do not require multiple rewrites and where low cost is the paramount consideration, such as video games, music and other content, or for archiving.

Because OTP technology is not rewritable once programmed, it complements rather than directly competes with Flash memory, which is rewritable but more costly.

SanDisk intends to support and sell Matrix’s 3D OTP products through its various sales channels.

The closing of the deal is subject to regulatory approval and the satisfaction of standard conditions. The parties expect to complete the acquisition by the end of 2005.