All Roads Lead to Rambus

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

Comments

[johndowd:]

Keep up the great work Pruf. As an owner of RMBS since the late 90's I am glad to see that the story is being presented in its unvarnished truth in a concise fashion. Of course the RMBS PR and IR department should be doing this but although RMBS has great supra-world class engineering talent they are woefully lacking in the executive branch.

For others interested in Pruf's commentaries you can fill in the rest of the story by a visit to www.rambus.org.

Once again Pruf thanks and keep the truth flowing!

Mar 19 07:43 AM

[Infinitus:]

I am invested in RMBS for over 10 years. No analyses I read in the past came close to Prufrocks articles over the past few days (and I read a lot of them).

Thank you very much for your very insightfull in-depth analysis of Rambus the company and its whole situation.

I am looking forward to read more of RMBS, PLEASE Prufrock :-)

RMBS legal situation hasn't been better than today, and their IP-portfolio couldn't been stronger. When the world will take notice of the more than likely AT-case reward of up to ~13 billion $ in the pockets of RMBS, then this stock will fly to new all-time-highs.

This is the stock to be long for the next decade(s).

Infinitus

Mar 19 07:44 AM

[shortscants...:]

Prufrock,

First I'd like to see Rambus Inc. hire you as their director of P.R. Then once you succeed in precipitating a world wide settlement with all their foes, I'd like to see the Obama Admn. hire you to give Axelrod, Emanuel, Geithner, Summers, et. al. lessons on how to employ the English language in a manner that generates positive vibes and a smile on the faces of all listeners. You do indeed write with a smile.

Mar 19 07:45 AM

[Davers:]

I'm as impressed by your lucid writing and analysis as I am by the innovations of RMBS.

Is there anything RMBS can't do? ... ya, maybe just ONE thing ... get paid for their inventions by the corporate kleptomaniacs who lead Hynix, Samsung, Nanya, Micron, nVidia and a host of others.

Mar 19 08:23 AM

[Jim2720:]

Thanks Prufock for making some technical aspects of this article easy to understand.
This multi billion-dollar theft of intellectual property against a superior innovative small company such as Rambus has been hard to watch over the years because of unfair competitor collusion, however, as expected, the truth, law and the juries have been resolute and the end is in sight. The upcoming anti-trust case will change how IP law is handled in the future as the largest precedent case in US history. Rambus, whose memory tech innovations have led the way for incredible change in the memory market worldwide, has unfairly been held hostage to sign new licenses (which is the way publicly traded intellectual property companies earn revenue).

This David will beat the Goliath’s who tried to put them out of business and I will be there when it happens.

Mar 19 08:43 AM

[mij3000:]

What a shame.........Giant Foreign companies conspiring to "kill" a small American start-up.........and doing it on American soil........using the USofA Courts...................

Mar 19 08:47 AM

[mutual:]

many have a different view of the facts. it would be nice if you could footnote cites to what you say. it was good that someone referred to rambus.org in a comment.

Mar 19 08:51 AM

[nxt999nxt:]

Prufrock,

You shall be "rewarded in heaven" for your commitment and service toward speaking the truth about the Rambus revolutionary technology.

Those of us who have believed for years...and been frustrated by the theft of "our" (stockholder's) technology owe you immensely.

Big Thanks.

Mar 19 08:51 AM

[nxt999nxt:]

* I love your characterization! "corporate kleptomaniacs".

You might be able to license it for use.


On Mar 19 08:23 AM Davers wrote:

> I'm as impressed by your lucid writing and analysis as I am by the
> innovations of RMBS.
>
> Is there anything RMBS can't do? ... ya, maybe just ONE thing ...
> get paid for their inventions by the corporate kleptomaniacs who
> lead Hynix, Samsung, Nanya, Micron, nVidia and a host of others.

Mar 19 08:53 AM

[dkschardein:]

Excellent read. RAMBUS has some of the best engineers in the industry.

Mar 19 09:07 AM

[Mr. B:]

The article highlights some key points.

While Rambus has been ripped of by the "corporate kleptomaniacs" and the closure of ten years of litigation should lead to billions of dollars in recoveries from what has been stolen, that is only part of the story.

Rambus has continued to innovate through all of this. XDR and MMI are examples of this.

Going forward, I expect Rambus to have a robust business as litigation concludes and as Rambus is recognized for its technological leadership. Rambus could easily have $1 billion plus in revenues in a very short time.

I am long Rambus.

Mar 19 09:13 AM

[RambusWins:]

“…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.

Well said….

The Northern California judge in the Anti Trust case, who in the last two weeks denied the manufacturers’ all 7 motions, reinforced your above statement when he said:

"....But one of many tactics used to reduce RDRAM to a niche product. Raising prices was an intermediate step to get OEMs to not use RDRAM. Thus being upstream or downstream is not the key. Here it is that many tools were used to screw Rambus."

Great article Prufrock as usual. And Rambus shareholders worldwide should thank you for you insights.
Bring it on!

RambusWins

Mar 19 09:39 AM

[usedcarjon:]

The good professor has hit the mark again-
his articles have told the true story of a modern
day hero that has been villainized. It is like a
Shakespearean tale of modern day. Its lucky that
someone as talented as the prof. can tell this
story. Great history.
good luck
ucj
disclosure-long RMBS

Mar 19 10:20 AM

[ODR:]

Bravo Pruf! Bravo!

It is such a shame that none of the business press seems to possess the willy to report this massive ongoing theft and attempted murder of the "little company that could". After all the BearStearns, Lehman Bros., Bernie Madoff's, and AIG corruption stories one would think the environment would be ripe to write a juicy story on Rambus.

Everyone laughed @ David in the Bible for even the mere mention of the idea of taking on Goliath. Well, we know how that ended. This one is headed for the same result.

I'm waiting ...

DR

Mar 19 10:31 AM

[longram:]

Thank you for posting this

Mar 19 12:21 PM

[opa11111:]

Thanks Pruf
Your chronology of events make this article the best yet (more to come?). This one does not dwell on the past, but lets people know that the future is even brighter than the past for the prospects of the Rambus business. The expiring patents be damned, the future is very bright.

Mar 19 01:21 PM

[User 383168:]

"Elpida is the only extant licensee of XDR other than Samsung"

*Cough*

Toshiba? Sony? IBM? Intel if they so chose?

I realize that you just make up nonsense as you go along, but spare me your generalized ignorance, much less your very deep and vast ignorance of the technology.

Mar 25 08:54 PM

[bolshaya_ka...:]

Most of those posting here are self-proclaimed long-time Rambus believers--so obviously you aren't open-minded in the least.

I like the part where you say that Rambus threatened the entire memory industry's very existence from the start. Let's see, if Rambus isn't going to manufacture the memory--just patent some of the ideas that the industry is already getting set to move on--who is going to manufacture it?

One point to chew on (I've made it and more in a response to one of your previous posts): In the crazy DRAM market, where foreign governments inject capital and over-expand to try to increase their populace's standard of living--memory is so undervalued compared to the immense IP poured into producing it competitively that it's almost unbelievably ironic how lame the SDR/DDR patents are by comparison, which Rambus is trying to get rich on.

If you WIN--who will pay? Do you plan to bankrupt every DRAM producer except for Samsung? That's going to be a great marketplace. I bet they'll sign up for the next Rambus license. You bet. You'll finally be rid of "the cartel".

Mar 26 06:03 AM

[Prufrock:]

Regarding your statement, bolshaya, that I stated that Rambus "threatened the entire memory industry's very existence"
I suggest you reread the article. I stated that:

"The IP-only paradigm which Rambus represents was perceived by the DRAM industry (Memory Manufacturers...aka MMs) as a threat to their very existence"

There is a great deal of difference. Obviously you are one who "perceived" that Rambus threatened the industry. The truth is that Rambus did the R&D work for the Memory Industry. They solved the bottleneck between CPU and Memory. Then they showed the Memory Manufacturers how to do it, and still the idiots at Micron, Hynix, and Samsung didn't believe it. When Intel finally said this is where we are going, the MMs got on board. Either the R&D has value or it doesn't. I argue that Rambus IP has value because every manufacturer of Memory adopted the discoveries, even JEDEC eventually simply annexed Rambus IP into there standard, and admitted as much.
Here's a little exercise for you bolshaya. If Micron had invented the IP that Rambus invented, would they have a right to the patent value of it BECAUSE they manufacture it? It's very simple really. Rambus did the hard work in the lab,and continues to do so, to defeat the bandwidth restrictions at the interface. Therefore they deserve a reasonable license for their discoveries, whether they manufacture anything or not.

Prufrock

Apr 02 10:48 AM

[beandog:]

JEDEC claiming Rambus secretly "fooled everyone" is a joke. You're talking about technology Rambus has that was way ahead of its time..from changing the then 20mhz to 500mhz memory speed. Rambus' chip design was totally novel and mind-bloggling that everyone would have wondered where it came from before JEDEC adopting it. Truth is, all the committee members knew. Most just want to steal from Rambus. It was Toshiba, a customer of Rambus, who encouraged Rambus to join JEDEC. Toshiba knew Rambus had powerful patents and thought Rambus could benefit the industry.

Besides, it was standard practice that JEDEC members did not have to reveal their patents (but that those patents that get adopted would charge reasonable rates), but Rambus revealed all of theirs (pending patents) anyways.

Is Rambus really the next Qualcomm? beanieville.blogspot.c... ...

Jun 20 02:42 AM