Over the past couple of years saw a rise in demand for AI chips to power AI applications. This has made the South Korean fabless AI chip industry a leading industry in the space.
Now, the space is consolidating. Two of the prominent South Korean fabless AI chip giants, Rebellions and Sapeon have agreed to merge. The companies released this information on Wednesday through a joint statement. Both companies are hoping to lead the South Korean market with the merged entity to rival the Nvidia-like companies.
In a statement, the companies said that they see the next two to three years as the Golden Time for South Korea to win the global AI chip race. They will also focus on their Neural Processing Unit (NPUs) as the demand for NPUs is increasing rapidly.
In the specialized AI chip market globally, Nvidia accounts for 97%, all thanks to the early leap by the company into providing data center services and software. However, there is still time for companies like Rebellions and Sapeon to establish themselves in the market.
Both companies did not disclose the merger ratio but said that they would soon begin the due diligence. They said that the due diligence will take around a month or so, hoping to close the transaction in the second half of 2024. They also said that the Rebellion team will lead the management of the business.
Rebellion has 130 employees while Sapeon has more than 100 employees. All employees of both companies will join the new entity.
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