Rambus Gains Nearly a Billion As a Result of Agreement with Samsung

Samsung Electronics Signs Agreement with Rambus

by Anton Shilov
01/21/2010 | 02:17 PM

Samsung Electronics and Rambus announced this week that they had reached agreement settling all claims between them and licensing Rambus’ patent portfolio covering all Samsung semiconductor products including a perpetual fully paid-up license to certain current DRAM products. As a result of the proceeding, Rambus will gain nearly a billion of dollars and will also ensure that Samsung produces its forthcoming memory types.

 

As part of the overall agreement, Samsung will invest $200 million in Rambus stock. Other consideration to Rambus includes an initial payment of $200 million and a quarterly payment of about $25 million for the next five years. Basically, Rambus will get around $700 million in cash and $200 million in investments, or $900 million in total.

In addition, Samsung and Rambus have signed a memorandum of understanding (MOU) relating to a new generation of memory technologies which brings together Samsung’s experience in memory technologies with Rambus’ innovations in high performance memory interfaces. The two companies will initially focus on graphics and mobile memory solutions and will further review a potential collaboration on server and high-speed NAND Flash memories.

Both Samsung and Rambus said they are pleased to resolve their differences and move forward.

“Bringing together Samsung’s market and technology leadership with our innovations for high-performance and high-efficiency memory architectures will make possible an exciting new generation of mobile, computing and consumer electronics products,” said Harold Hughes, president and chief executive officer of Rambus.