GAONCHIPS IPO challenge...The beginning of the birth of "Samsung DSP's 4th Listed Company" 

GAONCHIPS is going to push for IPO as its goal for first half of 2016. It is going to expand its capabilities and infrastructure in order to increase its ability to respond to high-tech process design of semiconductors. If GAONCHIPS succeeds in IPO, it will be the fourth Korean listed company among Samsung Electronics' official semiconductor design house partners called 'Design Solution Partner (DSP). 

GAONCHIPS recently filed a preliminary review with the Korea Exchange for listing on the KOSDAQ. The listed organizer is Daeshin Securities. It is going to prepare IPO with goal of entering KOSDAQ in first half of new year. "We are planning to expand the company's private tax and secure manpower by attracting investment (through listing)." said a representative for GAONCHIPS. "We are considering ways to expand various corporate infrastructures such as mergers and acquisitions (M&A)." GAONCHIPS is also a design partner for ARM, a global semiconductor Intellectual Property (IP) company. It was also named the " Design Partner" this year for the best design support and service offering among the 21 ARM design partners in the world.

GAONCHIPS has been securing human and physical capabilities depending on demands for high-tech micro-processes. The number of employees increased from 100 until last year to 150 this year. It has also achieved growth in sales by winning orders for many semiconductor design support projects. Total sales this year are estimated to be 32 billion won, which is more than 70% increase compared to last year.

GAONCHIPS is going to challenge IPOs to invest additional manpower and strengthen its R&D capabilities on the back of its rapid growth. This means that Samsung Electronics is joining the trend of 'building up a body' that is currently being promoted in the design house industry. South Korea's semiconductor design houses are hiring tens to hundreds of additional workers and responding to demands for semiconductor fabless and foundry ultra-fine processes.

As GAONCHIPS started its IPO, the birth of Samsung Electronics' DSP's fourth listed company is nearing its countdown. Samsung Electronics' DSP is responsible for bridging Samsung Electronics' foundry and fabless businesses. It supports design optimization so that semiconductor fabless can easily utilize Samsung Electronics' foundry processes. Currently, Samsung Electronics' DSP has listed companies such as AD Technology, Alpha Holdings and CoAsia.

Growth of design houses such as listing GAONCHIPS is also positive for South Korean fabless businesses. In order for fabless businesses to utilize foundry ultra-fine processes such as Samsung Electronics, not only capacity of design houses but also size of fabless businesses are important. This is because there are about 50 to 100 people who are going to support design for 5-nano high-tech processes. Industries are predicting that Samsung Electronics' expansion of DSP infrastructures will increase accessibility of high-tech processes to South Korean fabless businesses.

By Reporter Kwon Dong-joon djkwon@etnews.com 

http://www.etnews.com/20211227000105