Rambus (RMBS) Baird 2024 Global Consumer, Technology & Services Conference summary

Business overview and market approach

• Operates through patent licensing, silicon IP, and chip businesses, with a robust patent portfolio generating $200–$220 million annually.

• Silicon IP business focuses on security and interface IP, generating $110 million in revenue and expected to grow 10–15%.

• Chip business has grown from $38 million in 2018 to $225 million, driven by buffer chips for DRAM modules and DDR5 cycle opportunities.

Product innovation and technology

• DDR5 cycle has shifted companion chips (SPD hub, temperature sensor, power management) onto the module, creating a $600 million market opportunity.

• Companion chips are expected to contribute revenue growth from late 2024 into 2025, targeting 20% market share.

• Each companion chip adds incremental ASP, increasing content per module.

Market dynamics and competitive positioning

• Buffer chip market was $700 million in 2023, expected to return to mid-to-upper single-digit growth in 2024 and double-digit long-term growth.

• Holds a strategic advantage as the last U.S.-based supplier, with strong execution against Montage and Renesas.

• Customers value U.S. supply chain security amid geopolitical tensions.