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Technology company Rambus’ shares surged significantly late last week as rumours about possible acquisition of the memory and interface developer by another company. Among likely buyers of the company some analysts note Samsung, who is in legal dispute with Rambus, other observers assume that Intel might be interested in the company.

Rambus claims it owns patents on key-technologies used in modern dynamic random access memory that is deployed in every single computer sold. The company is trying to force all makers of DRAM to pay royalties to Rambus for every single SDRAM, DDR SDRAM and DDR2 SDRAM chip sold. However, numerous memory makers and the Federal Trade Commission (FTC) act against Rambus. Recently the company filed a lawsuit against one of its main customer Samsung Electronics, after which the company’s stock price has been declining.

Mike Cohen, an analyst with Pacific American Securities, reportedly would point to South Korean electronics giant Samsung Corp., who is, along with Hynix Semiconductor and Micron Technology, are the key companies in a patent dispute with Rambus. Still, he said the takeover was unlikely.

Rambus declines to comment on rumours and speculations.

Discussion

Comments currently: 1
Discussion started: 09/15/05 12:30:16 AM
Latest comment: 09/15/05 12:30:16 AM

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It seems EXTREMELY unlikely Samsung would buy them, since if they did no one would buy the memory. No company, mainly Intel, would allow Samsung to have that much power, and using a memory technology from a company that makes memory, and therefore would have an interest in monopolizing the manufacture of it, would make Intel very vulnerable. For example, if Samsung prevented other makers from using the memory technology, and therefore became the single source, any problems with Samsung would paralyze Intel and could decimate their sales. If they raise prices, or even worse if their plant is destroyed (by natural or unnatural disaster) or they have other problems which limit production, Intel is powerless and vulnerable. They would never put themselves in this situation. No company would if they have a choice, and Intel has a choice. Graphics makers might be less reluctant, but even so no one wants to be dependent on a single source. So, it makes much more sense and makes companies much more comfortable to have intellectual property companies and the manufacturers seperate. An intellectual property company wants as many companies as possible to make the memory, a memory maker wants to be the lone one. Obviously, the former is better for the industry.

As such, I don't see that happening. Intel buying Rambus is possible though. If they have a technology that Intel could leverage into a competitive advantage, it would make a lot of sense considering their volumes. In this case, having a memory technology that lesser companies like AMD would not be allowed to use, and improved system performance, would be totally consistent with Intel's aims and priorities. Even if it were only useful for things like integrated video chips, it could still make sense for Intel. I do not know if Rambus has anything that is useful though.
[Posted by: ta152h  | Date: 09/15/05 12:30:16 AM]

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