Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 105.83

+1.1%

12:10 PM EST

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To: Sun Tzu who wrote (73166)	5/17/2001 7:58:39 PM
From: tinkershaw	Read Replies (1) of 93625

The lost time that I was refering to was the time that got spent developing DDR. Even though Rambus does not make the chips themself, my guess is that if they had lowered their royalty payments, there would have been less drive to develop a competing technology. DDR vs. RDRAM has little to do with royalty rates. Rather it has to do with the amount of investment involved in ramping up for RDRAM vs. ramping up for DDR and the steep learning curve involved. It is quite simply much more expensive to produce RDRAM. You need to invest in new equipment and you have to learn new processes to do so. Some DRAMs were willing to make the investment, like Samsung. Others like Micron were much less willing to do so. Now companies like Micron know how far behind this has placed them in the learning and IP curve in comparison with Samsung, NEC, et al. They know that if RDRAM becomes the standard that they will be at a competitive disadvantage. Therefore the huge DDR war. It had little to do with a 1.5% to 2.5% royalty, which is all the royalty being charged on RDRAM. Tinker

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