Rambus (RMBS) BofA Securities 2024 Global Technology Conference summary

Company overview and business evolution

• Founded 30 years ago, initially focused on foundational memory interface technology and patent licensing.

• Expanded into silicon IP, selling to semiconductor companies for integration into SoCs.

• Developed a fast-growing chip business, supplying memory vendors like Samsung, SK hynix, and Micron.

• Revenue split: over $100M from silicon IP, $200M from patent licensing, and $225M from chips in 2023.

• Main markets are data centers, with a focus on memory interface and security.

Chips business and market dynamics

• DDR5 transition has driven market share from 20% (DDR4) to 40% (DDR5).

• DDR5 market rebounding in 2024, expected mid- to high-single-digit growth after a $750M market in 2023.

• DDR5 modules have increased complexity, moving functions onto the module and increasing chip content.

• Companion chips (SPD hub, temperature sensors, PMIC) add $600M TAM to the $750M RCD chip market.

• Goal to reach 20% share in companion chips, with contributions ramping in the second half of 2024.

Product and technology strategy

• PMIC business is a new growth driver, leveraging expertise from RCD chips and ecosystem knowledge.

• High-end PMICs introduced first to establish credibility, with plans to expand into client systems.

• AI server architectures drive incremental content and accelerate DDR5 adoption.

• Client opportunities expected to grow as bus speeds increase, requiring similar solutions as data centers.