Z-RAM is a new type of low-cost computer memory that promises to reign in the cost of smaller and faster future PCs.

In August, one of the five major memory makers Hynix Semiconductor struck a license deal with Innovative Silicon, in which it has the first-mover opportunity to use Z-RAM in dynamic random access memory (DRAM) chips. Hynix did not disclose when it plans to release product, but it likely will take about three years or so.

Microprocessor maker Advanced Micro Devices first licensed Z-RAM from Lausanne, Switzerland-based Innovative Silicon in December 2005. Last December, it licensed generation 2 Z-RAM, which essentially enables faster memory and higher yields, but has not yet announced any Z-RAM products.

Wellington Partners Venture Capital participated in Innovative Silicon’s recent funding round.