SEMIFIVE Sets Itself Up for Success in AI ASIC Market with Upcoming IPO and Growth Strategy

SEMIFIVE's Bold Move into the AI ASIC Market

SEMIFIVE, a prominent player in the design of custom AI application-specific integrated circuits (ASICs), is making waves with its upcoming Initial Public Offering (IPO), strategically planned to bolster its market presence. The IPO highlights the shifting landscape of the semiconductor industry, where demand is increasingly centered on AI ASICs rather than traditional general-purpose chips. SEMIFIVE is poised to meet this demand head-on by offering tailored chip development solutions to fabless companies and device manufacturers worldwide.

As interest in AI technology surges, SEMIFIVE has reported a considerable increase in new orders—from KRW 57.2 billion in 2022 to a staggering KRW 123.9 billion in 2024. This growth has been primarily fueled by high-performance AI ASIC technologies, an efficient design platform, and full turnkey services which streamline the development process for clients. The company anticipates even greater profitability as more of its projects convert from development phases to mass production in the latter half of this year. With the subscription period for the IPO set for December 18-19, expectations are high for a successful market entry.

At a recent press conference in Seoul, SEMIFIVE’s CEO, Brandon Cho, underscored the company's mission to simplify semiconductor design, akin to the revolution that TSMC introduced in semiconductor manufacturing. He stated, "We are lowering barriers to entry by platformizing semiconductor design, enabling anyone to develop AI semiconductors rapidly and effortlessly. This IPO will help us secure our leading position in next-generation technologies such as 3D-IC and enhance our engineering infrastructure."

Founded in 2019, SEMIFIVE’s core philosophy revolves around enabling the cost-effective, speedy, and straightforward development of system semiconductors. The firm provides an all-encompassing range of engineering services encompassing everything from the design phase to mass production. This business model is structured to generate sustainable revenues from ongoing development services, mass production contracts, and intellectual property (IP) royalties.

The company's partnerships with influential device manufacturers like Hanwha Vision and a notable global NAND memory producer, alongside AI-focused fabless firms such as Furiosa AI and Rebellions, place it in a distinct position within the industry. The applications for SEMIFIVE’s AI solutions are diverse, spanning data centers, edge computing, storage systems, cameras, smart glasses, and various mobile devices. By broadening its customer base across several major markets—namely the U.S., China, Japan, Europe, and India—SEMIFIVE has secured a viable and sustainable supply chain, ensuring long-term growth potential in the global semiconductor sector.

SEMIFIVE divides its operations into three primary segments: Development Services, Mass Production Supply, and IP Business. The Development Services segment offers an end-to-end ASIC development solutions, covering all aspects from defining chip specifications to delivering production-ready samples. On the other hand, the Mass Production Supply segment ensures the direct production of ASICs via partnerships with foundries, creating exclusive relationships with clients and generating consistent revenue streams.

A key area of revenue generation for SEMIFIVE comes from its subsidiary, Analog Bits, which specializes in IP licensing and is recognized as a leader in low-power mixed-signal IP. The revenues from licensing have reportedly approached tens of billions of KRW annually, providing a substantial financial backing for SEMIFIVE's developmental strategies.

One of the standout capabilities of SEMIFIVE lies in its experience and expertise related to the challenges of designing intricate AI ASICs. The company has cultivated a robust understanding of the entire design value chain, including advanced process nodes ranging from 2nm to 4nm and large die-chip design—both crucial for high-performance AI semiconductor production.

Currently executing sophisticated projects at Samsung Foundry's second-generation 2nm GAA process, SEMIFIVE has increased its revenue from next-gen processes significantly—from 5% in 2022 to 41.4% by Q3 2025. The firm also accomplished the design for a 500mm² chip for a domestic AI semiconductor company and is exploring the development of an ultra-large 800mm² high-performance computing chip for an Asian AI firm.

SEMIFIVE's commitment to utilizing cutting-edge technology is evident as it delves into advanced 3D-IC technologies, enabling vertical integration of DRAM chips. This innovative approach, which minimizes chip area while enhancing performance and energy efficiency, positions SEMIFIVE as a forerunner in the race to produce next-generation AI processors.

With the ascending demand for AI ASICs, SEMIFIVE's order influx shows significant growth, jumping from KRW 5.7 billion in 2020 to KRW 125.7 billion in early 2025, highlighting its successful platform-based design strategy. As the company forges ahead with plans for further global expansion and technological advancements, its positioning at the forefront of semiconductor design promises promising developments in the near future.

Going into the IPO, SEMIFIVE aims to allocate funds for expanding its engineering capabilities, enhancing tech leadership through global partnerships, and bolstering operational resources. With anticipated mass production of various AI chips—including those for security cameras and data centers—scheduled to ramp up in the upcoming years, the company is on a robust trajectory for growth beyond 2026. This strategic positioning underscores SEMIFIVE's commitment to redefining the semiconductor landscape and ensuring its role as a global leader in AI technology.