Rambus Needs Intel on Its Side

The companies' current deal already has Intel in a position to tinker with XDR because the technology is covered in the current agreement. However, the licensing pact is essentially a basic permit allowing Intel to access the patents, but not necessarily additional information or techniques to maximize XDR's performance. A logical take-up point for the interface would also occur in 2006, when Rambus launches its second-generation XDR.

XDR is touted as ideal for improving graphics performance, a feature of growing importance as computing chips are increasingly found in consumer-electronics products, in addition to their pivotal role in high-end computers built especially for gamers. XDR has already been tapped for inclusion in Sony's(SNE Quote) PlayStation 3 as part of the Cell processor codeveloped by Sony, IBM(IBM Quote) and Toshiba, seen as being used in high-definition televisions, computers and game machines.

This could be another incentive for Intel to move to XDR. "The Cell chip poses a big threat to Intel's traditional market," says Mike Crawford, director of research at Barrington Partners, a Santa Monica, Calif.-based hedge fund. "One way that Intel might be able to maintain its competitive edge is to incorporate XDR into its own designs."

And even though any financial benefits wouldn't be seen for an extended period, Crawford sees Rambus' assertiveness as a positive. "XDR is probably still too advanced for the PC market, but it is important for Rambus to get back on [Intel's] roadmap."

Still, this isn't a done deal.

Crawford says there is still the cautious overhang from the last time Intel said it wanted to move in Rambus' direction, which prompted the revolt by the memory makers and the resulting litigation. He says, though, that the landscape is different and he doesn't see the memory chipmakers as likely to respond as they did in the past.