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Rambus (RMBS) - Get Rambus Inc. Report shares got a boost Wednesday following its announcement that Toshiba has broadened its license of its next-generation memory technology.

The pact furthers Rambus' efforts to establish its so-called XDR memory technology into a new class of digital products by linking up with one of the world's top consumer electronics companies.

Rambus shares were up 11.9%, or $2.06, at $19.34 in recent trading.

"Toshiba is on the forefront of delivering breakthrough solutions for next-generation systems," Rambus Senior Vice President of Platform Solutions Laura Stark said in a statement. "This agreement continues the long and sucesscful collaboration between our companies to provide state-of-the-art technology for today's most demanding computing and consumer electronics products."

Los Altos, Calif.-based Rambus doesn't manufacture chips, but licenses the intellectual property it develops to other companies. Wednesday's deal with Toshiba is the second between the two firms in four months.

Under the terms of latest deal, Toshiba will be able to use Rambus' XDR memory-controller technology as well as Rambus' PCI Express high-speed interface in its 65-nanometer chips. XDR technology involves a type of memory designed for graphics-heavy applications like video games.

Pacific American Securities analyst Michael Cohen says the deal wasn't a complete surprise given that Toshiba is one of the three developers of the Cell processor, which will be used in


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forthcoming PlayStation 3 game console. The Cell-based PS3 consoles use XDR memory, so it's natural that Toshiba would make a controller to work alongside the memory.

And the deal does not expand the ecosystem of companies involved with XDR, said Cohen, who personally owns shares of Rambus, since Toshiba was already a licensee for other aspects of XDR memory.

But Toshiba's further support for XDR broadens the technology's potential, given the company's vast array of consumer electronics products, such as high-definition televisions.

Perhaps more importantly, the fact that Toshiba will now be able to manufacture both XDR memory chips and controllers means it could sell a complete XDR memory package to other consumer electronics companies, thus allowing XDR to spread beyond Cell processor-based products.

"It is definitely the first step away from the Cell processor," says Semico Research memory analyst Bob Merritt.

But Merritt points out that it remains to be seen what type of mass-market products will actually adopt XDR memory.

"The question would be whether whatever Toshiba has in mind is of substantial enough volume to dramatically increase the production of XDR," says Merritt.