Samsung Electronics has settled a patent dispute with U.S. chip firm Netlist Inc. by signing a five-year agreement to license Netlist's memory chip patents, Netlist said Thursday.

Under the agreement, Samsung Electronics will gain access to Netlist's patent portfolio, including technologies related to server dual in-line memory modules (DIMMs) and high-bandwidth memory (HBM) used in artificial intelligence (AI) servers and high-performance computing systems.

Netlist, a Delaware-based company, develops advanced memory and storage technologies, including server memory and HBM solutions for AI computing.

"We're excited to renew this partnership and look forward to working closely with Samsung," Netlist CEO C.K. Hong said. "These strategic agreements reflect the companies' shared commitment to innovation in the AI-memory space and validate the value of Netlist's intellectual property."

As part of the strategic alliance, Samsung will also purchase 10 million Netlist shares under a separate memory product supply agreement.

The two companies agreed to settle and mutually end all pending legal actions related to the patent dispute.

The agreement follows years of patent litigation between the two companies.

In 2021, Netlist sued Samsung, alleging that the Korean tech giant's memory products used in cloud computing servers, along with other data technologies, infringed its patents.

Samsung argued that Netlist's patents were invalid and that its technologies operated differently from those covered by the patents.

However, a Texas jury awarded Netlist damages of $303 million in 2023 and $118 million in 2024.

The legal battle continued as both companies filed additional appeals after several of the patents that Netlist claimed were infringed were later ruled invalid.