Jaram Technology Signs 16.5 Billion KRW Technology Development Supply Contract with Global Top Telecom Equipment Company

Next-generation system semiconductor specialist company Jaram Technology (CEO Baek Jun-hyun) announced on the 5th through a public disclosure that it has signed a development and supply contract for application-specific integrated circuit (ASIC) chips with global telecommunications equipment company A.

This contract pertains to the development and supply of semiconductor chips used in A's core products, which are produced at over ten million units annually, with a contract amount of 16.5 billion KRW. The contract amount covers the development costs required for the design and manufacturing of the semiconductor chips, and upon completion of development, A plans to purchase the chips from Jaram Technology. Accordingly, the company expects steady chip sales revenue for 7 to 15 years. The contract amount corresponds to 102.4% of Jaram Technology's sales revenue last year, and the contract period lasts until January 5, 2025. The contracting party was disclosed anonymously due to a confidentiality agreement.

Jaram Technology signed the contract to develop and supply semiconductor chips utilizing XGSPON technology that supports transmission speeds of 10Gbps to company A. The XGSPON communication semiconductor was first developed and commercialized domestically by Jaram Technology and is used in next-generation ultra-high-speed internet equipment and wireless base station connections.

This contract involves Jaram Technology directly designing and developing the chips according to A's required specifications, marking the first case where a domestic fabless company has secured an order from a global top-tier client for the design and supply of application-specific semiconductor chips.

Company A is expected to be a direct beneficiary of the BEAD program, the largest internet infrastructure project in U.S. history. The BEAD program, announced by the U.S. Department of Commerce last June, aims to build high-speed internet infrastructure across all 50 states by 2030. Approximately 42.45 billion USD (about 57.5 trillion KRW) in funding is planned.

Baek Jun-hyun, CEO of Jaram Technology, stated, “We were able to sign the contract by having our independently developed XGSPON semiconductor chip design technology and global competitiveness recognized. Discussions on additional product development with company A are progressing smoothly, and we expect to secure more global clients aiming to internalize core chips through this contract.”

He added, “Global telecommunications service providers such as the U.S. AT&T are showing great interest in the 25GS-PON communication semiconductors we are currently developing. Even before the sample chip release, discussions on product supply are underway with various telecom companies and telecommunications equipment manufacturers. We will actively respond to the global ultra-high-speed communication network upgrades, secure additional contracts, and leap forward as a market-leading company.”

Meanwhile, Jaram Technology is accelerating not only the development of the next-generation 25GS-PON SoC, the next step of the XGSPON communication semiconductor, but also AI semiconductor products. The AI semiconductors being developed by Jaram Technology are based on neural processing units (NPU) expected to have high applicability in the Internet of Things (IoT) field, with development targeted for completion within this year.

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