This article points out an interesting scenario that RMBS is creating. Driving DRAM manufacturers to their technology by raising the prices of the rival technology...(I don't think we've seen that...though I'm sure that someone here will correct me!)
Dr.Id
6/30/00 - Rambus hopes DRAM royalties tip the scale
Jun. 30, 2000 (Electronic Buyers News - CMP via COMTEX) -- These are heady times for Rambus Inc. Through an artful
application of the carrot and the stick, the third-party IP designer has retained Wall Street's favor while bolstering its claim
to fundamental DRAM technology patents.
Initially, Rambus' contention that it owns the rights to the synchronous interface found in most memory chips on the market
was roundly rejected by leading DRAM manufacturers as indefensible. As part of a standard forged in an open JEDEC
forum, the technology was held by many in the industry to be common property.
But last month's surprise licensing agreement with Toshiba Corp.-and the subsequent and even more startling out-of-court
settlement with Hitachi Ltd.-has seriously challenged that premise. Although the two vendors are not among the DRAM
market's top tier, their willingness to negotiate away what previously had been thought of as standard technology has given
Rambus the legal high ground in its quest to control key DRAM intellectual property.
Since they aren't talking, one can only guess at the reaction to the licensing deals by leading manufacturers like Hyundai,
Micron Technology, NEC, and Samsung-though it's a safe bet their legal departments will see a spike in billable hours in
the weeks ahead.
However, if the story unfolds anything like Rambus' Direct RDRAM licensing plan, then presumably Toshiba and Hitachi
have received favorable terms that will begin to degrade for the rest of the DRAM industry depending on how long it takes
them to come to the table. And assuming it's successful in pressing its claim, Rambus could realize a healthy new royalty
stream, not just from Direct RDRAM sales but from the sale of single-data-rate and double-data-rate SDRAM.
And therein hangs the tale. Though it has weathered delays from associated core-logic chipsets coming from Intel Corp.,
Rambus technology still suffers from the perception that it's more costly, consumes more space, and is harder to
manufacture and test than conventional SDRAM. Those drawbacks have kept most companies (with Samsung the notable
exception) from jumping on the Rambus bandwagon with anything near the enthusiasm that had been expected.
Unable to win converts, shrink die, and cut costs fast enough to build a critical mass, Rambus has hit upon an ingenious
alternative by raising the price of its rival interface. Whether that will prove incentive enough to finally win over DRAM
manufacturers will be interesting to witness.
E-mail me with any comments at amaclell@cmp.com. ebnonline.com |
