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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 115.18-7.7%Jan 23 9:30 AM EST

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To: blrmkr who wrote (5174)6/27/1998 1:38:00 PM
From: Mark Rosneck  Read Replies (1) of 93625
 
Lance,

To recap, whatever royalty there is for the RAC, it would be paid by the chip set vendor -- Intel or VIA (if VIA supports Rambus).

I'm not aware of any data regarding the royalty that Intel pays. It could actually be the case where Rambus gives away the RAC to Intel. Kind of like giving away the razor to sell the blades but I don't know one way or the other. Personally, I'd find this surprising.

My real point in bringing up VIA is that this is the most likely way that computers using AMD processors will use Rambus RDRAMS. As to whether VIA supports Rambus at some point, as I said there are no data but their business model would certainly seem to make that likely. Their support won't happen in a vacuum either -- it will be driven by their relationship with AMD and by demands from motherboard vendors which will be driven by demands for better, cheaper, faster PCs. Of course, VIA chip sets are also used on motherboards with Intel processors so not supporting Rambus would seem to present an issue for them -- unless they have an alternative.

By the way, one area no one mentions much is the use of Rambus for graphics devices. Here is a case where the RAC is integrated into a processor (albeit a graphics processor). I know of two examples -- the Cirrus Laguna and Chromatic MPACT.

Regards,
Mark

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