Reuters is reporting that Samsung Electronics, the world's top maker of memory chips, is eyeing a deal with flash memory maker SanDisk, which is valued at $3.2 billion, in a potential move that could reshape a struggling industry.

The report said that the acquisition would expand Samsung's market share at a time when prices for flash memory, used in such products as digital cameras, cell phones and music players, are falling sharply. It could also reduce Samsung's licensing costs by assuming control of SanDisk's popular technology.

Many of today's cell phones include media card slots, which fit various SanDisk microSD and miniSD cards. Some devices, including iPods and a few cell phones, include 4GB or more of flash memory built in as well.