[Featured Stock] ICTK, Government's Full-Scale Quantum Technology Development... The 'Jinju' First Recognized by Big Tech

ICTK, which produces security chips applying 'Physical Unclonable Function (PUF)' technology, is on the rise. The news that the Ministry of Science and ICT confirmed the exemption from preliminary feasibility study for the 'Quantum Flagship Project' the day before seems to have influenced the stock price. The Quantum Flagship Project aims to achieve leading-level results within eight years by carrying out strategic tasks in the fields of quantum computing, quantum communication, and quantum sensing.

At 10:30 a.m. on the 27th, ICTK was trading at 10,120 KRW, up 21.93% from the previous day.

ICTK was listed on the KOSDAQ market on May 17 with a public offering price of 20,000 KRW. On the day of listing, the price rose to as high as 36,950 KRW, but due to a flood of sell orders for profit-taking, it fell below the 7,000 KRW level within three months of listing. The decline rate from the high to the low after listing reached 83%.

The recent rebound in stock price is attributed to alleviating overhang concerns. Expectations for growth in the quantum industry also seem to be reflected. ICTK has established a dual security system through its core Post Quantum Cryptography (PQC) technology and proprietary VIA PUF patent technology. PQC technology is a quantum cryptographic algorithm designed to defend against quantum computer attacks, and VIA PUF technology is a technology that prevents cloning through unique IDs using wafer process variations.

ICTK succeeded in developing the Giant 5 (G5) chip applied with PQC technology in collaboration with LG Uplus. This is the world's first case of commercialization of a chip applied with both PUF technology and quantum cryptography technology. Based on the G5 chip, USIM and eSIM have been developed and are already applied to communication devices. It is expected that by equipping PQC algorithms, protection against future quantum computer attacks will be possible. In 2022, ICTK signed security chip supply contracts with global big tech companies and global notebook manufacturers.

ICTK is establishing itself as a technology-leading company in the market, publishing white papers related to PUF technology in the TIES (Trusted IoT Ecosystem for Security) division of the Global Semiconductor Alliance. It is proactively responding to the advancement of IT technology by releasing products supporting quantum-resistant algorithms that can respond to the upcoming quantum era ahead of competitors.

Some of the funds raised through the initial public offering (IPO) will be invested in developing Giant 9. In preparation for the quantum computer era, it plans to equip it with quantum random number generator (QRNG) functions including PQC. With the advent of quantum computers, existing security systems are being threatened. Continuous research and development, such as launching products equipped with PQC, is necessary.

The Ministry of Science and ICT held the National Research and Development Project Evaluation Committee the day before and announced that it had confirmed the exemption from preliminary feasibility studies for six large-scale science and technology R&D projects. The government initially planned to invest 996 billion KRW over eight years to develop a 1,000-qubit (the basic unit of quantum computers) level quantum computer and applied for the preliminary feasibility study in March last year. Since it is an advanced technology, the review was not easy, and the announcement of results was repeatedly delayed. Due to concerns that domestic quantum competitiveness would fall behind, the exemption from the preliminary feasibility study was decided.