Apple has bought Anobit, a maker of flash storage technology based in Israel, for a reported $500 million, according to the Calcalist financial daily.

The acquisition was welcomed by Israeli Prime Minister Benjamin Netanyahu, who tweeted: Welcome to Israel, Apple Inc. on your 1st acquisition here. I'm certain that you'll benefit from the fruit of the Israeli knowledge.

Anobit has developed a chip that boosts flash drive performance through data signal processing.

It is believed that Apple's acquisition is related to the iPhone 5, which might get a third quarter of 2012 release date. The technology from Anobit can help Apple increase and enhance the memory volume and performance of the future smartphone.

In addition, mobile products such as the iPhone need as much storage in as little space as possible, which is making flash a necessity in mobile electronics. Anobit's technology will help Apple further improve flash, which in turn will allow the design to be slimmed down.

One of the most expensive pieces in Apple's products is the flash storage. By acquiring Anobit, Apple will be in a position to cut down this cost. Again Anobit specializes in Memory Signal Processing, which makes flash memory more reliable and efficient.

Anobit's technology also is expected to improve the media browsing experience for users.