Technology titan Apple (AAPL) is reportedly in advanced discussions about scooping up Israeli flash storage technology maker Anobit for as much as $500 million.

According to Israeli daily business paper the Calcalist, the Cupertino, Calif.-based company likely wants to acquire Anobit to increase and enhance the memory volume and performance of its devices.

Apple already uses an Anobit chip that enhances flash drive performance through signal processing in its iPhone, iPad and MacBook Air, the publication said.

A takeover of Anobit would likely value the company at $400 million to $500 million and mark Apple’s first acquisition of an Israeli company, the Calcalist said. Anobit is also reportedly in talks over a large round of financing with an unspecified Asian company that is a leading maker of flash memory.

Shares of Apple were recently trading at $395.35, up 0.88% on the day. The stock has rallied just over 21% so far this year.

The report comes as new data from the NPD Group show Apple’s iOS controls about 29% of the U.S. smartphone market through October 2011, compared with 53% for Google’s (GOOG) Android. Research in Motion’s (RIMM) operating system shrank to just 11%.

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