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Design houses move from outsourced chip design to AI chip architecture

Design house (DSP) companies that once focused on outsourced semiconductor design are expanding in both contract pricing and funding scale as AI chip mass production becomes harder with foundry steps alone after 2-nanometre nodes. With physical limits nearing, 2.5D and 3D stacking and chiplets are becoming key, making advanced packaging and interconnect new battlegrounds. Firms are shifting toward integrated design platforms and infrastructure architecture partnerships, alongside rising high-value project shares and larger financings.

Industry

LG Innotek Q1 operating profit up 136 percent on year to 295.3 billion won

LG Innotek said on April 27 it posted first-quarter revenue of 5.53 trillion won and operating profit of 295.3 billion won. Revenue rose 11.1 percent and operating profit jumped 136 percent from a year earlier, with revenue the highest ever for a first quarter. From the previous quarter, revenue fell 27.3 percent and operating profit declined 9.1 percent. The company cited solid demand and strength in high value-added semiconductor substrates.

Industry

LB Semicon accelerates shift to non-DDI, starts mass production for Renesas

LB Semicon said on April 27 it has begun mass production of Renesas power semiconductors, part of a strategy to move away from a business structure centred on display driver ICs toward non-DDI and power semiconductors. It plans to build a mid- to long-term growth base by securing a global customer base in the segment. The company said it met reliability and quality standards required in the power semiconductor market.