Apple Reportedly Snaps up Anobit, Will Build R&D Center in Haifa

Apple has reportedly acquired Israeli solid state drive (SSD) controller specialist Anobit for between $400 million and $500 million and also plans to open a research and development center in the country, which is known for its technological breakthroughs.

The report comes from Israeli Hebrew-language newspaper Calcalist, which said executives of Herzliya, Israel-based Anobit informed employees on Tuesday that the deal with Apple (NASDAQ:AAPL) had been completed. Calcalist first reported last week that Apple was negotiating with the founders of the privately held company: Prof. Ehud (Udi) Weinstein, Ariel Maislos and Ofir Levy.

Neither Apple nor Anobit have confirmed the deal, but this would not be the first time Apple has acquired a company without making an announcement. Earlier this year, Apple acquired C3 Technologies, a specialist in 3-D mapping technology, without an announcement.

The office of Israeli Prime Minister Benjamin Netanyahu was quick to welcome Apple. Netanyahu’s office tweeted: “Welcome to Israel, Apple Inc. on your 1st acquisition here. I’m certain that you’ll benefit from the fruit of the Israeli knowledge.”

It is unclear whether the tweet was based on first-hand knowledge of the deal or in response to the report in Calcalist.

Anobit, founded in 2006, supplies mobile SSD controller technology used in smartphones and tablets—including Apple’s iPhone and iPad, as well as its MacBook Air. It also supplies enterprise-class MLC-based SSDs.

Anobit’s most notable technology centers on its signal processing capabilities. The company’s Memory Signal Processing (MSP) technology leverages proprietary signal processing algorithms and advanced error correction (ECC). Anobit says the technology drives the endurance and performance of SLC-based SSDs using multi-level cell (MLC) NAND flash and next-generation triple-level cell (TLC) NAND flash.

In simple terms, Anobit’s controller technology boosts the signal-to-noise ratio of SSDs, which is essential as SSD makers attempt to make denser, more compact flash memory because increased electrical interference causes the memory to become inherently error prone. Anobit’s technology is able to make NAND flash much more stable and reliable.

“This deal makes strategic sense to us considering AAPL’s philosophy of vertical integration (e.g., PA Semi acquisition, etc.) and current use of Anobit’s technology,” Brian Marshall, IT hardware and data networking analyst for International Strategy & Investment Group (ISG), wrote in a research note Tuesday morning. “We believe Anobit’s key asset is their embedded consumer flash controller technology, called MSP, [which is] used in smartphones and tablets.”

In 2008, Apple acquired fabless semiconductor specialist P.A. Semi to engineer custom chips for its tablets and smartphones. The deal for Anobit would be Apple’s first hardware acquisition since that deal.

With a price tag of half a billion dollars, it could also be Apple’s most expensive acquisition. In 1996, the company paid $429 million and 1.5 million shares of Apple stock for NeXT, the company Steve Jobs founded after his 1985 ouster from Apple. NeXT’s OpenStep technology formed the foundation for much of the current Mac OS X system.

Parallel to the deal for Anobit, Apple is also reportedly preparing to open a development center—its first outside the US—in Haifa near the Technion – Israel Institute of Technology. The area already hosts development centers by tech giants Intel, Google, Microsoft and Yahoo!

Thor Olavsrud is a contributor to InternetNews.com, the news service of the IT Business Edge Network, the network for technology professionals.

RELATED NEWS AND ANALYSIS

• Ethics and Artificial Intelligence: Driving Greater Equality

  FEATURE |  By James Maguire,
  December 16, 2020

• AI vs. Machine Learning vs. Deep Learning

  FEATURE |  By Cynthia Harvey,
  December 11, 2020

• Huawei’s AI Update: Things Are Moving Faster Than We Think

  FEATURE |  By Rob Enderle,
  December 04, 2020

• Keeping Machine Learning Algorithms Honest in the ‘Ethics-First’ Era

  ARTIFICIAL INTELLIGENCE |  By Guest Author,
  November 18, 2020

• Key Trends in Chatbots and RPA

  FEATURE |  By Guest Author,
  November 10, 2020

• Top 10 AIOps Companies

  FEATURE |  By Samuel Greengard,
  November 05, 2020

• What is Text Analysis?

  ARTIFICIAL INTELLIGENCE |  By Guest Author,
  November 02, 2020

• How Intel’s Work With Autonomous Cars Could Redefine General Purpose AI

  ARTIFICIAL INTELLIGENCE |  By Rob Enderle,
  October 29, 2020

• Dell Technologies World: Weaving Together Human And Machine Interaction For AI And Robotics

  ARTIFICIAL INTELLIGENCE |  By Rob Enderle,
  October 23, 2020

• The Super Moderator, or How IBM Project Debater Could Save Social Media

  FEATURE |  By Rob Enderle,
  October 16, 2020

• Top 10 Chatbot Platforms

  FEATURE |  By Cynthia Harvey,
  October 07, 2020

• Finding a Career Path in AI

  ARTIFICIAL INTELLIGENCE |  By Guest Author,
  October 05, 2020

• CIOs Discuss the Promise of AI and Data Science

  FEATURE |  By Guest Author,
  September 25, 2020

• Microsoft Is Building An AI Product That Could Predict The Future

  FEATURE |  By Rob Enderle,
  September 25, 2020

• Top 10 Machine Learning Companies 2021

  FEATURE |  By Cynthia Harvey,
  September 22, 2020

• NVIDIA and ARM: Massively Changing The AI Landscape

  ARTIFICIAL INTELLIGENCE |  By Rob Enderle,
  September 18, 2020

• Continuous Intelligence: Expert Discussion [Video and Podcast]

  ARTIFICIAL INTELLIGENCE |  By James Maguire,
  September 14, 2020

• Artificial Intelligence: Governance and Ethics [Video]

  ARTIFICIAL INTELLIGENCE |  By James Maguire,
  September 13, 2020

• IBM Watson At The US Open: Showcasing The Power Of A Mature Enterprise-Class AI

  FEATURE |  By Rob Enderle,
  September 11, 2020

• Artificial Intelligence: Perception vs. Reality

  FEATURE |  By James Maguire,
  September 09, 2020