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

Chips&Media has achieved a historic milestone by signing its largest single IP license agreement since its founding.

Seoul, South Korea – November 27, 2024 -- On September 30^th, Chips&Media (CEO, Kim Sang-hyun), a global leader in video IP, officially announced a $5 million IP licensing deal with a Chinese AI SoC semiconductor developer. This agreement encompasses both video IP and NPU IP, representing 24% of the company’s total sales in 2023.

Chips&Media emphasized that it is notable for

• its size as a single contract,
• marking it as the first licensing agreement for NPU IP and
• establishing a solid foundation for expanding its global presence.

This contract is regarded as a significant milestone for Chips&Media, as it marks the full-scale launch of its AI technology into the global market. In particular, the licensed NPU IP is tailored for artificial intelligence computations specific to image processing. It is expected to be indispensable for developing AI SoCs in high-performance image processing applications, including data centers, AI PCs, and robotics.

Moreover, amid the ongoing US-China semiconductor conflict, China is intensifying efforts to bolster its semiconductor ecosystem. The rise of local companies focusing on AI development is continuing to ramp up, and this presents an opportunity for Chips&Media to strengthen its position in the Chinese AI SoC market.

“This agreement is significant as it is the first license for our new video-specific NPU IP,” said the CEO. “Chips&Media IP will play a critical role in areas where AI technology is essential, and we anticipate continued opportunities for collaboration with global customers.” 

Founded in 2003, Chips&Media specializes in semiconductor IP, primarily focusing on video IP for image processing. Its revenue is generated through licensing fees at the time of IP supply and royalty payments from semiconductor production and sales. With over 150 global customers, more than 90% of its sales derived from exports, and a consistent 30% profit margin, the company has secured a dominant position in the global market.