[Click eStock] "Nextchip Benefits from Increased Vehicle Camera Installation"

NH Investment & Securities analyzed on the 22nd that Nextchip is expected to benefit from the increase in vehicle camera installations. No investment opinion or target price was provided.

Nextchip is a fabless semiconductor company specializing in automotive applications. It possesses a total semiconductor solution for vehicles that performs information transmission, recognition, control, and command based on data secured through cameras.

NH Investment & Securities expects Nextchip to benefit from the growing demand for vehicle cameras. Kyunggeun Kang, a researcher at NH Investment & Securities, stated, "From July 2024, all new cars launched in the European region will be required to be equipped with ADAS. Starting this year, many automakers such as GM and BMW are releasing new cars equipped with Level 3 autonomous driving functions."

He added, "Cameras have intuitiveness and visibility, serving as the vehicle’s ‘eye,’ making them a key component in implementing advanced driver assistance systems (ADAS) and autonomous driving functions. Vehicles at autonomous driving Level 2 require 7 to 8 cameras, Level 3 currently requires more than 12 cameras, and this number is expected to increase up to 24 by 2026."

He explained, "ISP sales will increase significantly this year, and next year, ADAS system-on-chip (SoC) sales will be added, leading to a turnaround to profitability. ISP is expected to expand its application models for domestic automakers, with sales projected at 26 billion KRW this year and 52.5 billion KRW next year."

He emphasized, "AS SoC will expand its application to robots, with sales expected to begin in earnest from next year. For automotive use, APACHE5 is under supply discussions with European OEMs, and APACHE6 with American OEMs, with mass production expected after the end of 2025."