[Click eStock] "Chips and Media, Growth Potential Visible with AI Development"

Hi Investment & Securities analyzed on the 10th that Chips&Media's growth potential will become visible as the demand for video processing expands due to the development of artificial intelligence (AI). No investment opinion or target price was provided.

Chips&Media is a video codec semiconductor intellectual property (IP) specialist company established in 2003. Video codecs are embedded in multimedia semiconductor chips and are responsible for recording, playback, and processing functions of videos. The demand for such video codec IPs is expanding not only in smartphones and TVs but also across various industries such as action cams, security cameras, automobiles, and data centers, driven by the need for ultra-high-definition video processing technology.

Lee Sangheon, a researcher at Hi Investment & Securities, said, "NPU (Neural Processing Unit) is an AI-dedicated semiconductor designed to mimic the way the human brain processes information," adding, "Chips&Media completed the development of CMNP, a video-specialized NPU IP, this month, expanding its portfolio from its core video IP to include processor IP."

He explained, "The NPU IP CMNP is a processor IP capable of executing AI algorithm functions such as SR (Super Resolution), NR (Noise Reduction), and OD (Object Detection) on the same hardware," further stating, "It is suitable for implementing high-quality video, performing functions such as converting low-resolution videos to high-resolution, removing noise from videos, and recognizing objects in front of the viewer."

Hi Investment & Securities expects Chips&Media's CMNP to be a growth driver. He said, "The NPU IP CMNP will target major customers including data centers, home appliances, set-top boxes, and cameras with high demand for FHD and UHD or higher quality video content analysis and playback, as well as ADAS and autonomous vehicles where real-time advanced video processing technology is essential," and evaluated, "By targeting the global market centered on the Greater China region, growth potential will become visible through license sales of the NPU IP CMNP."