Publication of Eugene Investment & Securities Analysis Report
The World's Only AI Semiconductor Integrated IP Supplier
[Asia Economy Reporter Hyungsoo Park] Open Edge Technology is showing strong performance. As generative artificial intelligence (AI) services spread, news that Google, Microsoft, Apple, Amazon, and others are fervently developing semiconductors more specialized for AI services than graphics processing units (GPUs) seems to be influencing stock prices. Industry insiders expect big tech companies like Apple and Google to seek partners individually because, due to the specialized nature of system semiconductors, they cannot design and produce all chips in-house.
As of 10:37 AM on the 13th, Open Edge Technology is trading at 18,350 KRW, up 10.34% from the previous trading day.
Global market research firm Gartner forecasts that the global AI semiconductor market will grow from $12.1 billion (approximately 15.373 trillion KRW) in 2020 to $34.3 billion (approximately 43.578 trillion KRW) next year. According to the IT industry, all of the top 10 IT companies by global market capitalization, including Apple and Microsoft, have actively entered the AI semiconductor business. They are applying self-developed AI semiconductors to their operations. Amazon’s cloud subsidiary, Amazon Web Services (AWS), unveiled the second model of its inference AI semiconductor, “Inferentia,” at the end of last year, three years after releasing the first model in 2019.
Researcher Jongseon Park of Eugene Investment & Securities introduced, “Open Edge Technology is the world’s only AI semiconductor integrated IP supplier” and “has signed license agreements with 20 domestic and international clients.”
He added, “In December 2019, the company acquired Canadian PHY IP specialist TSS, and in 2020, royalty revenue was generated through license IP for TSS.”
Furthermore, “They signed the first PHY IP license agreement for high-performance computing equipment with Micron, and in 2021, they secured a memory controller IP license agreement with a U.S. company I, as well as the first license agreement for PHY IP cooperation with global company S,” he explained.
He emphasized, “With the growth of the global AI semiconductor market, high performance growth is expected. Open Edge Technology is the only global company capable of simultaneously supplying the core AI semiconductor NPU (Neural Processing Unit) IP and memory system IP, which serves as the backbone of all semiconductors.”
Researcher Park analyzed, “Compared to competitors, they have secured higher efficiency. The NPU IP achieves up to 3.4 times higher power efficiency and 2.4 times higher area efficiency than competitors.” He also said, “Based on technological competitiveness and a proven track record, they have established strategic partnerships with global companies such as Samsung Electronics, TSMC, SK Hynix, Hyundai Motor, and Micron.”
He further explained, “For mid- to long-term growth, they are pursuing maximized market leadership in AI semiconductor integrated IP solutions through continuous development of cutting-edge processes. They have secured global Tier-1 customer references to expand fabless customers.” Open Edge Technology is working to expand its client base among more than 3,000 system semiconductor customers worldwide.
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