Fabless company Three A Logics, specializing in Near Field Communication (NFC), showed strength compared to its initial public offering (IPO) price on its first day listed on the KOSDAQ market. Three A Logics has led the localization of NFC system semiconductor chips, which were previously dependent on imports, by being the first in Korea to independently develop NFC reader chips and NFC tag chips.
NFC is a key component in the Internet of Things (IoT) era, enabling internet-connected devices to exchange information without human intervention.
The global NFC market has grown from $10 billion in 2017 to $25 billion in 2023. It is expected to reach $50 billion by 2028, growing at an average annual rate of 14.9%. In line with the market growth and the expanding applications of NFC, Three A Logics has begun proactive preparations to secure future growth engines.
Three A Logics is gaining attention for its excellent technology competitiveness not only domestically but also in the global market. Its flagship products are 20-40% smaller in size compared to competing products, offering higher efficiency. They also have a comparative advantage in stability. Notably, Three A Logics is recognized as having NFC technology capabilities on par with global NFC companies, being the third in the world to mass-produce automotive NFC chips and obtain CCC certification.
Including patents on core foundational technologies such as dual-band tag technology, the company has filed a total of 108 patents to date, with 53 patents registered. It holds 59 core circuit implementation patents, and has filed 29 overseas patents including PCT (Patent Cooperation Treaty) applications, demonstrating its recognized technological prowess.
As of 9:50 AM on the 24th, Three A Logics was trading at 11,660 KRW, up 6.0% from its IPO price.
Through demand forecasting, Three A Logics set its IPO price at 11,000 KRW, below the lower end of the expected range of 15,700 to 18,200 KRW.
NFC technology is a wireless communication technology that transmits and receives data using a 13.56 MHz frequency band over a short distance of about 10 cm without contact. It features fast pairing between devices, high security, and low power consumption. Its convenient power-free communication enables applications in ▲electronic payments ▲digital door locks ▲access control ▲electronic shelf labels (ESL) ▲automotive and smart logistics ▲healthcare ▲smart home appliances, among increasingly diverse environments.
Three A Logics’ main products are NFC tag chips and NFC reader chips, which accounted for approximately 64.1% of total sales in 2023. NFC tag chips include integrated circuits for data storage and antennas for communication, while NFC reader chips have the function of detecting, reading, and writing data from tag chips. Three A Logics is the first and only company in Korea to commercialize NFC tag chips and NFC reader chips.
Three A Logics is focusing on the automotive and smart logistics sectors, which have high future value and easy market expansion. The automotive sector is shifting to systems using smartphone NFC for smart locking, car sharing, charging, and vehicle management. The company’s key products include automotive NFC reader chips ‘TNR100’ and ‘TNR200’. The TNR200, developed in September, is the first domestic product to meet the latest technology standard Digital Key 2.0 for automotive digital keys, boasting outstanding technological competitiveness surpassing existing NFC reader chips in recognition distance, size, card detection distance, and durability.
To target the world’s largest Chinese automotive market, which produces over 35 million vehicles annually, Three A Logics established a Global Business Center (GBC) in Shenzhen last year and is actively conducting sales activities for full-scale entry into China by supplying chip samples and module prototypes to multiple Chinese automakers.
Industry experts expect the role of NFC to grow as artificial intelligence (AI) technology advances. Data transmission and reception between devices via NFC technology will become more active, including in IoT. Combining the vast real-time data collected through this with AI models can enable driver-customized security authentication or smart logistics and vehicle management solutions. Payment and access authentication information conducted through NFC reader and tag chips could become a crucial part of AI training data. This suggests that NFC may emerge as a foundational technology to provide next-generation services such as autonomous driving, healthcare, and wireless charging more safely and efficiently in the future.
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