[Click eStock] "Chips&Media, Benefiting from China's AI Rise"

NH Investment & Securities analyzed on the 31st that Chips&Media is expected to benefit from China's AI boom.

Researcher Kang Kyung-geun of NH Investment & Securities stated, "Chips&Media is a semiconductor intellectual property (IP) company," and explained, "As a company specialized in the video IP sector, it will benefit from the increased demand for video IP in various fields such as AI data centers and autonomous driving."

He added, "Sales targeting China are increasing due to the rise in AI investments in China," noting, "This is influenced by the increase in fabless companies in China and the growing demand for domestic AI SoC development."

He emphasized, "As of 2023, Chips&Media's sales proportion in China is 61.4%," and highlighted, "Last September, they signed a license contract worth 6.6 billion KRW, the largest single contract for the Chinese semiconductor company, for the video-dedicated AI semiconductor NPU IP called ‘CMNP’."

Researcher Kang analyzed, "The expansion of business in China is accelerating, including the establishment of joint ventures (JV) with Chinese AI SoC companies," and added, "Considering that license contracts in China have been actively signed since 2020, the speed of royalty income increase is expected to accelerate from this year."