Chips&Media said on Oct. 27 it posted consolidated third-quarter revenue of 7.16 billion won and operating profit of 1.66 billion won. Revenue rose 8.2 percent and operating profit increased 8.7 percent from a year earlier.

Royalty revenue fell as customers reduced chip production due to the impact of memory supply and demand. It made up for that by expanding new licences in AI and mobility. Licence revenue rose 33.0 percent from a year earlier to 4.43 billion won, leading overall revenue growth, the company said. Net profit came to a loss of 600 million won after foreign exchange losses and valuation losses on financial assets were reflected.

Chips&Media said new automotive projects at major domestic fabless companies and the first licence related to an on-device AI semiconductor business broadened its customer base.

In China, it secured new licences for AI SoCs and humanoid robots, and new mobile licences from major North American customers also continued. The company explained that demand for physical AI centred on autonomous driving and robotics is translating into tangible licensing results. It plans to strengthen its position in the mobility market while expanding applications to robots, drones and edge AI.

The company said it expects royalties to return to growth next year as a domestic AI SoC fabless customer begins mass production of chips for robots, home appliances and IoT devices. It also plans to secure new licensing opportunities in mobile and camera areas as the APV ecosystem spreads and demand rises for the AV2 standard.

It will also broaden its technology portfolio to respond to the on-device AI market. Based on cooperation with global AI algorithm companies, it will push commercialisation of AI ISP and strengthen competitiveness in NPU and compression IP to expand its business scope as a comprehensive multimedia IP company. It also plans to strengthen sales capabilities focused on global big tech and large customers, and to respond to IP demand driven by expanded investment in AI semiconductors in South Korea and a recovery in China's semiconductor industry.

A Chips&Media official said, "New licences in domestic on-device AI and China's robotics sector are results showing that application areas for our technology are expanding." The official added, "Based on next-generation video standards and an AI IP portfolio, we will secure new customers and strengthen our business foundation so accumulated licences can lead to mass production and royalty growth."