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Rambus (RMBS) Plans to Produce Branded Chips for First Time Ever

August 17, 2015 7:45 AM EDT

Rambus (Nasdaq: RMBS) is in focus Monday following reports that the company is planning to begin making chips under its own brand name.

The WSJ noted that this would be the first time for the 25-year-old company to produce branded chips. Rambus typically derives revenue from suing over patent infringement, a practice that has caught negative attention in recent years.

Rambus has moved beyond the licensing game in recent years; the company bought Cryptography Research in 2011 and has also moved to start an LED-related lighting business.

Rambus will mainly focus on producing data buffers, which are components that are incorporated with memory chips and hold data while its being transferred between other components. This helps to minimize communication delays.

Shares of Rambus are flat in early trading.



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