Chips&Media Signs $5 Million IP License Agreement... First NPU IP Contract

Chips&Media has signed the largest single IP license contract in its history.

Global video IP technology leader Chips&Media (CEO Kim Sang-hyun) officially announced on the 30th that it has signed an IP license contract worth $5 million with a Chinese AI SoC semiconductor development company. The contract includes both video IP and NPU IP, with the order contract alone amounting to approximately $5 million, which corresponds to 24% of the 2023 revenue.

Chips&Media stated that this contract is significant in terms of ▲ the largest single contract size ▲ the first NPU IP license contract ▲ and laying the foundation for global sales expansion.

In fact, this contract is regarded as an important milestone for Chips&Media’s AI technology to be officially introduced to the global market. In particular, the NPU IP is a technology that supports AI computations specialized for video processing and is expected to be essential for AI SoC development for high-performance video processing in data centers, AI-PCs, robots, and more.

Especially, China is strengthening its domestic semiconductor ecosystem amid the US-China semiconductor conflict, and the number of companies focusing on the AI field is continuously increasing. Through this, Chips&Media is expected to further solidify its position in the Chinese AI SoC market.

CEO Kim Sang-hyun said, "This contract is significant as it is the first license contract for our new technology, the video-specialized AI NPU IP," adding, "Chips&Media’s IP will play an important role in fields requiring AI technology, and opportunities for collaboration with global clients are expected to continuously increase."

Meanwhile, Chips&Media, established in 2003, is a semiconductor IP specialist company focusing on the video IP business responsible for video processing. Its main revenue is divided into license revenue generated at the time of IP supply and royalty revenue received when semiconductors made by customers using the IP are produced and sold. Based on world-class video IP technology, it has secured over 150 domestic and international customers, with more than 90% export ratio, and achieves high profitability in the 30% range through stable license revenue and royalty revenue, securing a dominant position in the global video IP market.