Part 5 of 5
Q&A
The following were some of the questions and answers that weren't covered in the previous messages.
Is embedded DRAM a competitor?
Not really. Right now you can't embed much. Three years ago, the forecasts said that embedded memory would be much bigger, but it's not. Beyond 2010, we don't know.
What was the problem with the 820?
Think of Intel as the general contractor who says "do this" and we do it, but we don't know everything that's going on. It was a joint problem (we're not blaming Intel), and given the FDIV problem that Intel ran into, it wasn't acceptable to release the product as it was. The problem has been nailed down. [Note: I have no idea what this means, either.]
How are royalties structured and what are the rates?
There are all sorts of variations with caps, minimums, step down rates, etc. so there's no standard deal. Intel obviously got a really good deal. For RDRAMs it's up to 2.5% and for logic chips 3% to 5%.
Why the lawsuit?
We tried to work with Hitachi. The missed all their contractual obligations. One effect is that all the other licensees are being nicer. Also, we've been trying to higher additional lawyers to look at the patents and are having trouble finding firms that aren't already looking into the issue. Which tells us that a lot of lawyers are studying our patents.
Why is there such resistance from the DRAM manufacturers?
It's a competitive game, and they don't want Samsung to win. It's more important that the PC company executives are lined up, since the DRAM guys will make whatever gets ordered. The PC execs are saying that RDRAM is a major, and growing, part of our product mix. The interests of the DRAM manufacturers and systems companies are in conflict - the system people want fast, low-priced, commodity-like memory, whereas the DRAM manufacturers want a differentiated, fractionalized market. [Note: he added later, in the stand-up session, that the public perception lags the internal perception by about 6 months. Once the 820 started shipping and the orders from the system manufacturers started coming in, the DRAM manufacturers began taking those orders and starting up the lines, but the public doesn't see that yet.]
Is there a microprocessor speed where RDRAM is the only answer?
It all depends on the software.
What about RDRAM in servers?
Most Sun system still ship with EDO DRAM. The server manufacturers tend to be a couple of years behind as they tend to be cautious and they have slightly different needs.
Is the Toshiba redesign of the DRAM core (which gets the die size penalty down to the projected 10% now) proprietary or available to all?
If it's a redesign of the core, it's probably proprietary, but that doesn't mean the other manufacturers can't figure out how to do it as well. |
