Chips&Media Conducts Block Deal of Treasury Shares to Institutional Investors... "Expanding New IP Portfolio"

Chips&Media is taking proactive steps to secure investment resources aimed at expanding its IP portfolio and acquiring related overseas technologies.

Global video IP technology leader Chips&Media (CEO Sanghyun Kim) announced on the 22nd that its board of directors has decided to conduct a block deal of approximately 301,553 treasury shares to high-quality institutional investors.

The disposal price of the treasury shares is KRW 34,129 per share, which is 95.2% of the closing price on the 21st, amounting to approximately KRW 10.3 billion.

The purpose of this treasury share disposal is to proactively secure funds for ▲ expanding a new IP portfolio that can create synergy with existing video IP and ▲ acquiring related overseas technologies.

A Chips&Media company representative stated, "Our disposal of treasury shares is different from typical treasury share disposals aimed at raising operating funds, as it is a proactive measure to secure investment resources for accelerated growth. The funds from this treasury share disposal, combined with existing cash assets, will be used proactively for R&D costs to expand the new IP portfolio and to acquire overseas related technologies that can create synergy with the company’s business."

In fact, Chips&Media is driving rapid growth supported by the increase in royalty revenues based on its independent video IP business capabilities and the rising demand for AI video processing in data centers, leading to increased licenses for ▲ GPU SoC (graphics processing semiconductor chips) and ▲ AI SoC (artificial intelligence semiconductor chips).

Additionally, the company is preparing to launch an AI-based video processing specialized NPU IP in the fourth quarter of this year, and has been setting record-high quarterly performances, with average royalty revenues exceeding KRW 10 billion over the past three years.

Regarding this, Chips&Media CEO Sanghyun Kim said, "Since our establishment in 2003, we have focused solely on the video IP business. Following the favorable market conditions in the system semiconductor industry due to the full-scale launch of 4th industrial revolution services, we have encountered an opportunity for performance growth and will now intensify R&D investments for greater growth. We will do our best to share the fruits of growth with investors through accelerated quantitative growth by targeting the global market beyond Korea and to enhance shareholder value."

This content was produced with the assistance of AI translation services.