[IPO Spotlight] AI Semiconductor Design Company 'OpenEdge', Woori Bank and LG CNS Also Invest

[Asia Economy Reporter Park So-yeon] Semiconductor intellectual property (IP) company OPENEDGES Technology is attracting market attention ahead of its initial public offering (IPO) next year. Following a 3 billion KRW investment through a fund by Hyundai Motor Group and KDB Industrial Bank, funds invested by Woori Bank and LG Group have also been identified to have invested approximately 8 billion KRW.

According to the financial investment industry on the 21st, Stonebridge Ventures formed the Stonebridge DNA Innovation Growth Investment Fund with a scale of 108 billion KRW and invested about 8 billion KRW in OPENEDGES. The Stonebridge DNA Innovation Growth Investment Fund expects a return of about 24 billion KRW, which is approximately three times the invested amount.

Looking at the investor composition of the Stonebridge DNA Innovation Growth Investment Fund, Korea Fund of Funds (22 billion KRW), Industrial Accident Compensation Insurance Fund (15 billion KRW), Hana-KVIC Unicorn Mo Fund (12 billion KRW), Shinhan BNPP (10 billion KRW), Woori Bank (10 billion KRW), Korea Scientists and Engineers Mutual Aid Association (10 billion KRW), Military Mutual Aid Association (10 billion KRW), Yellow Umbrella Mutual Aid (10 billion KRW), LG CNS (3 billion KRW), and KCC Information & Communication (1 billion KRW) participated in the investment. Stonebridge Ventures contributed 5 billion KRW as the general partner (GP). The main investment targets of this fund are innovative infrastructure such as data, networks, and artificial intelligence, as well as small and medium-sized venture companies related to the three new industries: system semiconductors, future vehicles, and bio-health.

About 45% of the first fund's raised amount was invested in related companies, with 8 billion KRW invested in OPENEDGES. OPENEDGES was established at the end of 2017 by CEO Lee Sung-hyun, a former Samsung Electronics employee, along with semiconductor design experts from Samsung Electronics, SK Hynix, and Chips&Media. Instead of manufacturing semiconductor chips directly, it supplies semiconductor intellectual property (IP) to fabless companies like the UK-based ARM, earning license fees and royalties based on semiconductor chip production volume.

OPENEDGES is focusing on semiconductor design related to artificial intelligence edge computing technology, which is expected to become widespread in the future. This includes low-power, high-efficiency neural processing units (NPUs) and next-generation high-performance memory semiconductors. Edge computing enables real-time data processing on devices or equipment and is gaining attention as a technology that complements cloud computing.

For example, when developing autonomous vehicles, processing all data on a central server can cause several issues. Communication delays between the vehicle and server make it difficult to respond to unexpected situations, and server overload and security are also problems to be addressed. Edge computing solves these issues by equipping autonomous vehicles with onboard computing devices capable of processing data independently.

OPENEDGES is the only domestic IP supplier in the AI semiconductor and edge computing fields. Recognized for its technological capabilities, it counts global companies such as Samsung Electronics and Micron among its clients. Samsung Ventures, initially invested in by Samsung Electronics, is also listed as an early shareholder.

Recently, OPENEDGES selected Samsung Securities as the lead underwriter for its listing. Samsung Securities has commenced the listing preparation process, including due diligence, in accordance with the underwriting contract.

OPENEDGES and Samsung Securities plan to proceed with the IPO process aiming for entry into the KOSDAQ market in the first half of next year. If preparations proceed smoothly, they may file a preliminary review application with the KOSDAQ Market Headquarters of the Korea Exchange by the end of this year.

An investment banking industry official said, "OPENEDGES is expected to achieve sales exceeding 10 billion KRW this year, and based on this year's performance, it seems possible to file for an IPO next year."