Samsung is set to acquire Micron Technologies Inc., according to people familiar with the matter.
Samsung plans the deal as it seeks to focus on expanding its semiconductor business, which includes smartphone and tablet makers, the people said.
The deal would be Samsung’s second for Micron, which was spun out of a semiconductor unit of Japan’s SoftBank Corp. in 2004.
Micron was founded in 1976.
Samsung is expected to announce the deal shortly, the sources said.
Microns chips used in Samsung smartphones, tablets and smartwatches were used to build the Samsung Galaxy Note 7, which sparked a recall that shuttered some Samsung stores.
Samsung also has a large presence in the semiconductor industry.
Micronesia’s biggest chipmaker has been expanding its operations in Asia, and Micron’s chips are being used in devices including Samsung’s Galaxy S8 and Galaxy S9, the company said.
Samsung and Microns have made inroads in semiconductor manufacturing, with Samsung producing more than 20% of its semiconductors in Micronesias, according to the people familiar.
Micronics has made more than $300 billion in revenue and earnings for its shareholders since 2007.
Samsung’s smartphone business is among the largest in the world, but its profits are shrinking as its phones become increasingly expensive.
In the second quarter, the South Korean company reported a loss of $16.3 billion on revenue of $6.4 billion.
Samsung has been pushing to increase its profit margins and boost sales.
It will begin rolling out the Galaxy Note 9 smartphone this week, and it expects to have sales of 50 million phones this year, compared with more than 50 million in 2016.
The company has not announced plans to bring back the Note 7 smartphones.
Micropower company Micron announced in July that it had been sold to Chinese electronics giant Huawei, which said it had agreed to acquire the Micron-controlled company for $2.1 billion.
Micronext, which is also owned by Micron shareholders, said it would sell the company.
Micrometronics shares fell 5% in early trading Tuesday.
Samsung shares fell more than 2% in Tokyo trading.
MicRON said in its statement that the acquisition of Micron would help improve Microns competitive position and expand its products portfolio.
Samsung will acquire Micronesian semiconductor company Micronics Inc. for $1.9 billion in cash, with the latter company receiving the remainder, the companies said.
A spokeswoman for Samsung said in a statement that Micron will have more opportunities to grow its business.
Micronic has about 2.4 million employees worldwide and has sales of more than 3 billion chips.
Microrings CEO Eric Pang was expected to take the helm of Micronics as the company’s chairman in December.
In a speech to investors last week, Pang said Micron had to improve its competitiveness to compete in a global marketplace, and that he was confident the company would continue to make its chips.
“The acquisition of Microron is a great strategic investment for Samsung,” Pang told investors.
The two companies have different products.
Microron chips are used in some of Samsung’s smartphones, including the Galaxy S7 and S7 Edge, as well as in the Galaxy Pro tablet.
Microwave products are used to power Samsung’s OLED displays.
Microsion is a semiconducting company that specializes in high-power microwaves.
The chips are also used in smartphones and the Samsung Chromebook Pixel, a tablet with a built-in microprocessor that is designed to power high-end devices.
Micrologists have a strong connection to Samsung, which uses Micron chips for many of its mobile devices, including Samsung TVs, laptops and smartphones.
The semiconductor maker has also been making inroads into the wearable and home market.
Micrimeration Technologies Inc. is in talks with Apple to develop the WatchOS operating system for wearables, according the people.
The companies have agreed to a partnership to develop wearable technologies.