[Asia Economy Reporter Hyungsoo Park] Open Edge Technology is showing strong performance. While investments in the global information technology (IT) industry have generally frozen, funds are flowing into the generative tech sector. As AI investments increase, demand for AI semiconductors is also expected to surge.
At 10:29 AM on the 13th, Open Edge Technology was trading at 10,950 KRW, up 15.38% from the previous day.
Open Edge Technology provides IP and solutions necessary for AI semiconductor design. It is the only company worldwide that possesses an integrated AI platform IP solution. It primarily develops IP related to technologies that enhance the speed at which system semiconductors receive and process data from external sources. The business model involves providing these to foundries, fabless companies, and design houses, receiving licenses or royalties. It is a Samsung Foundry IP partner and has secured customers using TSMC. From 2023, it plans to officially register as a TSMC IP partner.
The company introduced that its AI platform IP integrated solution, which combines neural processing units (NPU) and high-performance memory systems, is optimized technology for developing edge AI semiconductors and provides the core framework for AI semiconductors. While individual IPs are competitive enough, the additional synergy created by the integrated IP solution of 'high-performance comprehensive memory system' and 'AI platform IP' strengthens competitiveness.
Open Edge has developed numerous PHY IPs for high-speed communication between the core components of AI semiconductors, NPU and memory, and succeeded in commercialization for the first time in Korea. It is also recognized in the market to the extent of licensing to overseas semiconductor manufacturers.
Open Edge CEO Sung Hyun Lee, a former researcher at Samsung Electronics LSI division, along with Open Edge employees, continues R&D aiming to become the 'ARM of Korea' in the AI semiconductor field such as NPU. Design personnel in the research and development (R&D) sector account for 80% of the total employees.
Jongseon Park, a researcher at Eugene Investment & Securities, explained, "The global AI (Artificial Intelligence) semiconductor market is expected to grow at an average annual rate of 22% from 2020 to 2025," and added, "Open Edge is expected to continue high performance growth." He further stated, "It has global top-level manpower with over 20 years of experience at Samsung Electronics and SK Hynix," and added, "It has emerged as the only global company capable of simultaneously supplying NPU (Neural Processing Unit) IP, the core of AI semiconductors, and memory system IP, which serves as the backbone of all semiconductors."
Jongwook Lee, a researcher at Samsung Securities, analyzed, "2023 is a year where new milestones are possible in both sales and profitability," and noted, "Open Edge IP is used in customers' high-bandwidth memory (HBM) technology." He added, "If annual sales exceed 30 billion KRW, the possibility of turning profitable increases," and "We have a high expectation for profitability turnaround within this year."
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