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Wednesday, July 03, 2013
Samsung And SK hynix Sign Licensing Agreement

Samsung Electronics and SK hynix Co. on Wednesday announced that they have reached an agreement to share patents for chipmaking technologies.

The world's two largest computer memory chipmakers did not provide any further information about their agreement, such as the contract's duration and the royalty fees. They just talked about a "comprehensive" cross-licensing deal.

The move will help "accelerate innovation in the semiconductor space," and lead to "richer development of value-added products," Samsung said in a statement.

With the move, Samsung will have the resorces to improve its strength in mobile DRAMs as it is cutting reliance on conventional memory chips.

SK hynix could learn Samsung's know-how in mobile DRAMs and NAND flash chips, as the company is trying to expand its shipments to smartphone makers in China such as Huawei.

The companies have been negotiating on the licensing pact for three years. Both are holding many patents related to chip making processes.

Samsung has also signed a similar deal with Micron Technology in 2010, while SK hynix and Toshiba have been also jointly using their respective chip making technologies since 2007. Earlier this month, Rambus and SK Hynix struck a five-year licensing deal, with the South Korean company agreeing to pay $240 million as royalty fees for Rambus's chip patents.

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