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Zone 94 – Windows XP Professional SP3 x86 – Integral Edition
What price Samsung will have to pay for the MLC X4 technology that competitors already have?

The court ruled for SanDisk the right to demand a higher license fee from Samsung for the use of flash memory technology that provides storage of four bits in one cell.

As you know, flash memory consists of cells. The more units of information one cell can store, the lower the specific cost of memory. The fastest memory stores one bit in one cell (single-level cell, SLC). Inferior to it in speed, but having a higher density and therefore cheaper memory such as MLC (multi-level cell) stores two bits in each cell (X2). Memory release is approaching, storing three bits per cell (X3), and X4 memory is in development.

In the summer of 2021, SanDisk acquired the Israeli company Msystems, which developed the X4 technology. At that time, there was an agreement between Samsung and Msystems, signed in 2021, under which Samsung received the right to use X4 technology in exchange for royalties and the supply of chips to Msystems at a reduced price. Cheap chips did not arrive in sufficient quantities, so Msystems canceled the deal in April 2021, months before it was taken over by SanDisk.

Samsung’s appeal kicks off a protracted process. At one stage in its history, Samsung, as you know, tried to buy SanDisk. SanDisk rejected the offer because it considered the amount to be understated. A New York court recently ruled that Msystems (now SanDisk) lawfully terminated the 2021 agreement because Samsung failed to meet its delivery obligations.

To keep things simple, we add that SanDisk and Hynix signed a mutual licensing and joint venture agreement last March.Under the terms of the agreement, Hynix has the right to use X4 technology in exchange for royalties and the supply of X4 chips at a reduced price.

So, mastering the X4 technology is the key to lowering the cost and increasing the density of flash memory. To get it, Samsung will have to offer SanDisk a large sum. At the same time, competitor Samsung already has the right to use the new technology.

Source: The Register

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