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News broke earlier this week that Apple has acquired Israel-based fabless flash memory firm Anobit for as much as $400 million according to TheMarker, adding another leading chip maker to the company’s portfolio. Anobit’s NAND flash memory is already used in Apple products including the iPhone and iPad, and the firm’s technology is said to offer several advantages over that of its rivals. As DigiTimes pointed out in a recent report, the move also means Anobit’s other clients are now forced to look elsewhere as Apple becomes the exclusive owner of Anobit’s chip technology. Major players including Hynix and Micron were Anobit partners in the past, taking advantage of the company’s proprietary technology that improves the performance and lifespan of its flash memory products. Hynix, Micron and others are now reportedly looking to Taiwan-based companies including Phison Electronics and Silicon Motion Technology following the acquisition. Direct gains from Apple’s Anobit buy include the company’s technology and talent, but another advantage over rivals now emerges as a clear secondary benefit — smartphone vendors that used NAND flash memory chips made by soon-to-be former Anobit clients will no longer be able to utilize Anobit’s class-leading technology.

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