AD Technology Incorporated as Subsidiary of RTL Design Specialist 'Eaglem'

[Asia Economy Reporter Jang Hyowon] AD Technology (CEO Kim Junseok) announced on the 4th that it has acquired 100% of the shares of Eagleam (CEO Jeong Haeryong), a system semiconductor RTL (Register Transfer Level) design specialist company, and incorporated it as a subsidiary. Through this, the number of development personnel has been increased to about 100.

The company stated, "From this year, in a situation where reinforcement of specialized personnel is necessary to carry out large-scale system semiconductor development using domestic foundries, we acquired 100% of the shares of Eagleam, which has proven RTL development capabilities, and incorporated it as a subsidiary," adding, "We are also considering acquiring additional capable design companies for large-scale development in the future."

The latest system semiconductors such as artificial intelligence (AI), machine learning (ML), and accelerators, which are being considered for development using the latest 7nm/5nm FinFET process, require design of high-performance parallel computing architectures, large-scale circuit integration design, and efficient management of power and performance. Because the considerations in the pre-design phase are very complex, a large-scale specialized RTL design workforce is required for fast and stable chip development.

AD Technology recently announced through a public disclosure that it has terminated the VCA (Value Chain Aggregator) contract with TSMC and is currently negotiating a partnership with the best domestic foundry. AD Technology plans to make official statements through formal channels once the negotiations are completed.

Additionally, the company achieved sales of 225.8 billion KRW and an operating profit of 12.1 billion KRW last year, representing a 105% growth in sales compared to the previous year, and expects even better growth this year.

Regarding concerns about the termination of the VCA contract with TSMC, the company said, "Mass production volumes with SK Hynix will continue to be supplied, and rather, these volumes are expected to increase," adding, "Projects that were being developed based on TSMC will continue regardless of the VCA termination, and additional development based on domestic foundries will also proceed."

Meanwhile, AD Technology, established in 2002, is a system semiconductor design-specialized chipless company that contracts and executes turnkey system semiconductor design and mass production according to customer specifications.