Rambus Unit & Fairchild Ink Licensing Deal - Analyst Blog
April 09 2014 - 1:00PM
Zacks
Recently, Rambus
Inc.’s (RMBS) division, Cryptography Research, Inc. (CRI)
signed a patent licensing agreement with Fairchild Semiconductor
Corp. (FCS) for an undisclosed sum.
Per the terms of the agreement, FCS will be able to use CRI’s
patented Differential Power Analysis (DPA) countermeasures and
CryptoFirewall core security technology across a wider range of
products. The technologies will secure FCS’ tamper-resistant
integrated circuits. Leveraging Rambus’ patent portfolio, FCS will
bring in more innovative technological solutions for end users.
On the other hand, Rambus can use FCS’ software design tool for its
integrated circuit products. With this, Rambus can deliver
low-power-consuming chips even at lower nodes. Discovered by CRI,
DPA is an attack which analyses the fluctuating electricity usage
of a device and the encryption key it encloses. DPA countermeasures
help to protect users against tamper-resistant devices by examining
the power consumed by it.
FCS is a developer in the semiconductor industry and provides low-
to high-power solutions for mobile devices, cloud, automotive, LED
lighting, and computing industries. These technologies help to
provide new and advanced features and enhance the overall
efficiency of industrial products.
Licensing agreements are a recurring revenue source for Rambus, the
result of successful monetizing of its patents. In the fourth
quarter of fiscal 2013, the company reported customer licensing
income (including patent royalties received and gain from
settlements) of $73.8 million compared with $61.6 million in the
year-ago quarter. The year-over-year growth was mainly due to the
new license agreements signed with SK Hynix, Micron
Technology Inc. (MU), ST Microelectronics and LSI
Corporation (LSI).
Rambus’ patented technologies are of great importance to chipmakers
for manufacturing advanced chips used in computers and electronic
goods. Rambus has already licensed its technology to Fujitsu
Semiconductor Ltd., NVIDIA Corp. (NVDA), Broadcom
Corp., Micron Technology and MediaTek Inc. for their respective
integrated circuit products.
Most recently, Rambus signed a 5-year patent licensing agreement
with Nanya Technology Corporation. Per the agreement, Nanya
can use Rambus’ patented technology for its DRAM products through
the second quarter of fiscal 2018.
With the rising popularity of energy-efficient lighting, LED
products are finding place in the latest architectural, retail,
commercial and residential lighting fixtures. We find Rambus in a
favorable position to capitalize on this opportunity.
Currently, Rambus has a Zacks Rank #1 (Strong Buy).
LSI CORP (LSI): Free Stock Analysis Report
MICRON TECH (MU): Free Stock Analysis Report
NVIDIA CORP (NVDA): Free Stock Analysis Report
RAMBUS INC (RMBS): Free Stock Analysis Report
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