Netlist, Samsung settle patent disputes in new five-year memory deal

Demand for high-performance memory chips has surged as technology companies expand AI data centers, boosting demand for chips made by Samsung, SK Hynix 000660.KS and Micron Technology MU.O.

Netlist has struck a five-year deal to license its memory chip patents to Samsung Electronics 005930.KS, it said on Wednesday, gaining access to the South Korean firm's products and ending years of legal disputes between the companies.

Here are some details:

• Netlist develops advanced memory and storage technologies, including server memory and high-bandwidth memory technologies used in AI computing.
• Samsung will receive access to Netlist's patent portfolio, including its server dual in-line memory module and high-bandwidth memory technologies used in AI servers and high-performance computing.
• Samsung will supply Netlist with DRAM, which temporarily holds data while a processor is working, and NAND flash memory, which stores data long term.
• The companies agreed to settle and mutually release all pending legal actions.
• Samsung will purchase 10 million Netlist shares under the memory product supply agreement.

The agreement comes weeks after U.S. trade regulators launched an investigation into Samsung memory chips following a complaint by Netlist alleging patent infringement.

The probe covers products sold by Google GOOGL.O, Nvidia NVDA.O, Broadcom AVGO.O and Super Micro Computer SMCI.O that use Samsung memory chips.