M-Systems Strikes Hynix Accord

M-Systems

(FLSH)

, a maker of data-storage devices, agreed to buy $100 million of equipment that will be placed at

Hynix Semiconductor's

manufacturing facility in return for guaranteed supply of wafers.

The South Korean company will start supplying wafers to M-Systems once the company buys the equipment. In addition, M-Systems and Hynix are developing an embedded flash-drive product for the mobile handset market.

"These agreements are important to support our continued growth and commitments to our customers," M-Systems said in a press release. "Hynix becoming an additional source for DiskOnChip further validates our leadership within the EFD category."

Shares of M-Systems were up 48 cents to $26.06.