[Special Stock] AD Technology, 1.4 Trillion Won Investment in Autonomous Driving Chip Design Over 5 Years... 'Successful Samsung Foundry Collaboration Case'

[Asia Economy Reporter Hyungsoo Park] AD Technology is showing strong performance. The news that it has signed a contract with German AI semiconductor specialist Videantis to develop advanced autonomous driving semiconductors appears to be influencing its stock price. The vehicle semiconductors designed through the collaboration between Videantis and AD Technology will be produced at Samsung Electronics' 5-nanometer line starting in 2025. The chips made here will be supplied to global automobile manufacturers and parts companies, and sales of approximately $1 billion (about 1.4 trillion KRW) over five years from 2025 are expected.

As of 10:23 a.m. on the 19th, AD Technology is trading at 16,650 KRW, up 20.65% from the previous day.

AD Technology announced that it will develop a high-performance semiconductor for autonomous driving level 4 by combining ARM CPU's 5-nanometer chip design IP with Videantis' image processing platform technology. Videantis has a history of collaboration with global automotive parts companies such as Continental.

Jungkyu Park, CEO of AD Technology, said, "Based on 20 years of accumulated engineering capabilities, the company's 500 employees will actively cooperate with Videantis." Hans-Joachim Stolberg, CEO of Videantis, explained, "We are very much looking forward to collaborating with AD Technology on high-performance system-on-chip (SoC) development and mass production through Samsung Foundry."

AD Technology introduced that it is significant in that it has played a major role as a Design Solution Partner (DSP) of Samsung Electronics' Foundry division. Samsung Electronics is selecting DSP companies that support customer semiconductor design to expand chip production orders in order to expand the foundry ecosystem. AD Technology, selected as a DSP in 2020, is rapidly emerging as a key partner of Samsung Foundry by increasing orders from semiconductor customers below 7 nanometers, including Videantis.

Kang Moonsu, Vice President of Samsung Electronics Foundry Division, said, "This project is a successful case of collaboration within the Samsung Electronics foundry ecosystem," and added, "We will work closely with AD Technology to enable various customers to create competitive products using our 5-nanometer process."

Earlier, AD Technology held its 20th anniversary ceremony last month. Under the slogan 'ADTechnology Pride,' it announced that it aims to achieve $1 billion in sales by 2030. It plans to collaborate with about 50 global customers leveraging its business and technical capabilities.

Its three main execution strategies are ▲ expanding global customer promotion through collaboration with Samsung and partners ▲ continuously strengthening 'Big die' design capabilities in cutting-edge processes ▲ providing differentiated proprietary platforms and IP solutions.