All Roads Lead to Rambus
Prufrock
When Intel (INTC) chose Rambus (RMBS) proprietary RDRAM for their Pentium processor it was due to its superior performance, its disruptive capabilities, and its cutting edge bandwidth architecture. But, it wasn't only its technology that made Rambus disruptive. The IP-only paradigm which Rambus represents was perceived by the DRAM industry (Memory Manufacturers...aka MMs) as a threat to their very existence; thus, the conspiracy to "kill" Rambus. The Rambus legal team engaged those MMs who refused to license Rambus IP in court over time. During the ensuing years (pun intended), the engineers at Rambus pressed ahead with groundbreaking patented inventions.
What will finally trigger a price explosion of Rambus stock? Due to recent exciting litigation news several pundits have pointed in that direction as the most probable instigator of a stock price run-up. Equally compelling are the spectacular technological advancements emanating from Rambus labs. In November of 2007, Rambus formally entered into a Memorandum of Understanding (MOU) with Intel to "explore possibilities for its XDR memory technology". In January of this year, Elpida Memory Inc., Japan's leading DRAM supplier, announced that it would ramp up mass production of Rambus licensed XDR.
The new XDR product features the industry's fastest ultra-high speed of 7.2GHz, which is faster than any GDDR5 memory chip, and provides a data transfer rate of 28.8 Gigabytes per second with a single device, making it an ideal choice for such high-bandwidth, high-performance full HD-capable applications as game consoles, digital televisions and Blu-ray disc recorders.
Elpida is the only extant licensee of XDR other than Samsung, the DRAM gorilla currently embroiled in longstanding litigation with Rambus. In the final lines from Elpida's press release we see the following:
Sample shipments of the new XDR have already started and mass production is scheduled to begin in April 2009.
As a top supplier of XDR DRAM, Elpida continues to specialize in developing high-performance, low-power XDR products.
What will be the application for the mass-produced XDR? Inquiring minds will know very soon. Has Intel decided to go with XDR in its next orbit of technology? The new low power innovations from Rambus may also come into play. At the Japan Rambus Developer Forum at the end of 2007, the Terabyte Initiative (TI) was unveiled promising to deliver an astonishing 1000 GB/s to a single system on Chip. Such Rambus patented discoveries as Flexphase and Dynamic Point-to-Point are incorporated therein.
Rambus continues to expand its hegemony within the world of bandwith architecture. They are moving out so far ahead of JEDEC Standard Setting Organization knockoffs that the industry may have no choice but to adopt the far superior Rambus designs. The jaw-dropping advancements inherent in the Terabyte Initiative offer the most innovative roadmap for high performance solutions of the future.
Rambus technological leadership took another decisive step forward in February of this year with the announcement of its Mobile Memory Initiative (MMI). This design creates a conflation of extremely high bandwidth and low power consumption. Soon mobile devices will be do-it-all devices coupling HD resolution, gaming, high-end graphics, and multimedia. Rambus has come forward with a phenomenal solution. A single DRAM device could offer 17 GB/s (4 wide X 4.3) at an compellingly efficient 2 mW/Gbps. This would enable tremendous power with low battery consumption, exactly the necessary prescription.
Rambus has also successfully implemented an XDR interface using low profile quad flat package. This so-called LQFP is less expensive than the BGA (ball grid array) package. In order to reach full market penetration with XDR, Rambus will offer cost sensitive solutions which still deliver high performance.
While in the past MMs have ripped off Rambus IP, and attempted design-arounds, these powerful newer proprietary discoveries (eg.TI, MMI, and LQPF) may be beyond the reach of such underhanded (and illegal) avenues. Intel knows what SONY,Toshiba, and IBM discovered in their Rambus collaborations on PS3. When it comes to memory bandwidth architecture solutions, all roads lead to Rambus.
Disclosure: Author holds a long position in RMBS
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