Rambus rises on deal with IBM
By Rex Crum
Published: Mar 17, 2006 12:09 p.m. ET
RexCrum
Technology reporter
SAN FRANCISCO (MarketWatch) -- Rambus Inc. shares rose as much as 6% Friday as the semiconductor technology company inked a licensing agreement with International Business Machines Corp.
Rambus RMBS, +3.09% rose $1.71, to $33.48, after the company said IBM would use its memory interface technologies in IBM's Cell Broadband Engine processors. IBM IBM, +0.67% will use the chip technology to build servers, high-performance computing systems and high-volume consumer electronics products.
Financial terms of the deal were not disclosed. IBM currently develops the Cell processor with Toshiba Corp. and Sony Corp. SNE, +1.00%, and Sony will use the chip in its upcoming PlayStation 3 video game console.
The gain was one of the largest recent advance for Rambus that wasn't tied to its ongoing patent litigation with the likes of Korea's Hynix Semiconductor Inc. On Thursday, Hynix claimed that it shouldn't have to pay royalties on computer memory chips because it says patents held by Rambus aren't valid.
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Rex Crum
Rex Crum is a technology reporter for MarketWatch in San Francisco. Follow him on Twitter @mktwcrum.
Rambus Inc. U.S.: Nasdaq: RMBS
Market Cap 1.7B
International Business Machines Corp. U.S.: NYSE: IBM
Open $139.50
High $140.47
Low $138.75
Sony Corp. ADR U.S.: NYSE: SNE
Market Cap 88.6B