Official reports have confirmed that Samsung Electronics Co. has agreed that it would be paying a whopping $900 Million over a period of 5 years to Rambus Inc. as a part of an agreement to settle a highly-publicized litigation focused primarily on memory chips.

Under the new deal, which also includes new technology collaboration between the two firms, Samsung will be making upfront cash payment of $200 Million, in addition to quarterly payments of $25 Million, which would be equally distributed over a period of 5 years.

All the details have been confirmed by both Samsung and Rambus.

Also, the South Korean electronics giant will be purchasing newly issued Rambus stocks worth $200 Million.

With the arrangement, a litigation which began in 2005, after effort to renew an expired license fell through, has come to an end.

"I truly believe that both companies are looking to not just settle the case and move on, but to turning this into a new business relationship", said Sharon Holt, Senior Vice President of Licensing and Marketing for Rambus.