[Click eStock] "Chips and Media, US-China Semiconductor Regulation as a Business Opportunity"

by Kwon Hyeonji

Published 12 Mar.2025 11:18(KST)

Performance Improvement Expected This Year

Chips&Media's performance this year is expected to improve compared to the previous year, driven by royalty sales in China.

On the 12th, Kyunggeun Kang, a researcher at NH Investment & Securities, said about Chips&Media, "With ongoing follow-up license contracts and new license agreements, an increase in royalty sales in China is anticipated," adding, "In particular, the intensifying competition in artificial intelligence (AI) and the strengthening of U.S. semiconductor regulations against China are expected to act as opportunities for Chips&Media's business in China." Researcher Kang also noted, "As investments in NPU internalization increase in China, the video IP market is oligopolized by three companies, including Chips&Media," and "Thanks to the performance of the China JV business established last year and China's economic stimulus policies, royalty sales are expected to recover."

Chips&Media posted solid results in the fourth quarter of last year. Revenue increased by 22.9% year-on-year to 9.09 billion KRW, and operating profit rose by 25.9% year-on-year to 2.92 billion KRW. The operating profit margin was 32.1%. Although royalty sales decreased by 4% year-on-year to 2.68 billion KRW, license sales surged by 43.3% year-on-year to 6.12 billion KRW, driving revenue growth.

No investment opinion was provided for Chips&Media. The company's stock price was 16,450 KRW as of the previous trading day's closing price.

[Click eStock] "Chips and Media, US-China Semiconductor Regulation as a Business Opportunity"