Nanya Technology settles claims with Rambus, signs patent deal
By Kathryn Chiu, The China Post Tuesday, March 25, 2014, 12:18 am TWN
TAIPEI, Taiwan -- Nanya Technology (南亞科技) on Monday announced it had settled patent infringement issues with Rambus by signing a five-year patent license agreement, according to the dynamic random access memory (DRAM) maker.
In the announcement Nanya Tech, a sub-subsidiary of Formosa Plastics Group (台塑集團), said that under this agreement, Rambus and Nanya have settled all outstanding claims, providing Nanya with access to certain memory-related Rambus innovations through the second quarter of 2018. Other terms of the agreement are confidential.
According to Nanya, this agreement allows for the use of certain high-performance, low-power patented innovations developed by Rambus in Nanya DRAM products and enables future technology collaboration.
The licensing agreement with Nanya not only enables the use of certain Rambus memory-related innovations for a period of five years, but also opens the door for the two companies to collaborate on memory and interface technologies, which, according to the statement, are critical to meeting the emerging power and performance requirements of device-driven markets like mobile and cloud.
"This milestone agreement with Nanya marks a new era at Rambus, where we have no outstanding litigation and can focus 100 percent on working closely with customers to solve technology challenges," said Ron Black, president and chief executive officer of Rambus.
"We are pleased to put this matter behind us and explore mutually beneficial engagement opportunities to improve our products with Rambus technologies," said Charles Kau (高啟全), president of Nanya.
Nanya Tech closes down 1.08 percent
Nanya Tech yesterday bucked the broad market to drop 1.08 percent, or NT$0.04, closing at NT$3.65, while the benchmark Taiwan Capitalization Weighted Stock Index (TAIEX) closed up 28.21 points, or 0.32 percent, at 8,605.38.
Nanya Technology earlier announced its unaudited consolidated net sales revenue of NT$3.904 billion for February 2014, representing a 10.3-percent decrease month-over-month and a 27.5-percent increase year-over-year. Year-to-date consolidated sales revenue was NT$8.259 billion, 47.1 percent increase year-over-year.
Although the global DRAM business hit a turning point at the end of 2012, allowing Nanya Technology and Inotera to turn a profit last year, uncertainty over the market's prospects remains in place, analysts said.
Financial Supervisory Commission recently approved Nanya Technology cut its paid-in capital by up to 80 percent, a move expected to raise its book value per share to above NT$5 from current NT$0.41.
However, many investors fear that it reflects the company's pessimism over its bottom line amid fierce competition from its counterparts in South Korea and the United States.
By comparison, Inotera is a more profitable company than Nanya Technology. As standard DRAM demand remains slow because of weaker PC and notebook computer sales, Inotera seems better positioned to sustainably withstand global competition,
Inotera's book value stood at NT$8.13 per share as of the end of December, much higher than Nanya Technology's.
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