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DEEP RESEARCH · Korea DSP Big Three

SemiFive · Gaonchips · AD Technology — 2025-2028 Chiplet War Opens

AI paradigm shift and Samsung Foundry's DSP ecosystem: business models, financials and chiplet roadmaps compared

Date: 2025-12-18 · Focus on KOSDAQ-bound SemiFive vs Gaonchips & AD Technology · Source: Naver Blog

All investment decisions are your own responsibility. This material is research, not a buy or sell recommendation.

0. Bottom line first

Korea's design-solution-partner (DSP) sector is consolidating into three camps: "Tech-leader" Gaonchips (2nm GAA + I-Cube packaging vanguard), "Scale-king" AD Technology (500+ engineers + in-house interposer design), and "Platform" SemiFive (SoC platform + RISC-V + UCIe IP). All three depend on the success of Samsung Foundry's 2nm (SF2) node and 2.5D/3D advanced packaging yield. SemiFive's innovation is real but offset by a loss-making P&L (2024 OP −KRW 22.9 bn, NI −KRW 290.9 bn) and IPO-valuation pushback. Gaonchips offers explosive 2026+ upside via PFN/DeepX 2nm references; AD Technology offers earnings stability through HPC server design.

DSP industry structure and system-semiconductor value chain

1. AI semis explosion and foundry ecosystem reshuffle

In 2025 the chip industry rides the AI wave. Big-tech ASIC self-sufficiency (Google, Tesla, Meta) is accelerating, and at sub-3nm geometries, design houses (DSPs) evolve from passive "bridges" into full-stack platform partners spanning IP sourcing, packaging design, and yield management.

As Samsung Foundry pushes 2nm GAA + 2.5D/3D advanced packaging (I-Cube, X-Cube), the three core SAFE-ecosystem DSPs — SemiFive, Gaonchips, AD Technology — are more strategically important than ever.

2. SemiFive — platform innovation, financial challenge

2.1 Company overview

Founded 2019. Vision: turn system-semiconductor design into a "platform." Strategic relationship with US RISC-V IP firm SiFive. Co-founder/CEO Cho Myung-hyun (ex-BCG).

2.2 Core model — SoC design platform

Pre-verified "subsystem libraries" for common blocks (CPU, memory interface, PCIe etc.) assembled via an automated "design engine."

  • Reusability: Customers bring only their core IP (e.g. a custom NPU) and drop it on the platform. SemiFive cites up to 75% headcount reduction and 57% shorter development time.
  • Platforms:
    • Sesame (14nm AI inference) — AI accelerators, datacenter, ADAS on Samsung 14nm FinFET.
    • Fermion (5nm HPC) — hyperscale / cloud servers on Samsung 5nm FinFET.
    • WalnutCake (14nm AIoT) — low-power IoT, edge, wearables.

Already won first-generation chip projects from leading Korean AI startups (FuriosaAI, Rebellions, Mobilint). 2024 brought overseas wins — a US memory-device player "I" and a Chinese AI platform player "J."

2.3 Financial risk — growing pains and the profitability dilemma

Official fact: 2024 consolidated revenue KRW 111.8 bn, operating loss KRW 22.9 bn, net loss (impacted by derivative valuation losses) about KRW 290.9 bn. As of 9M-2025, mass-production revenue share was 23.1%.

  • High fixed costs: platform R&D, 357 engineers (2024), stock-based comp.
  • Accumulated deficit → IPO valuation contention → IPO proceeds intended for debt repayment / B/S repair.
  • True turnaround requires the NRE-to-mass-production "scale-up" step.

2.4 Peer-selection controversy

Peers cited for IPO pricing: Taiwan's Faraday, Alchip, GUC — already trillion-won market caps and steady profits. Applying the same PER to a loss-making SemiFive is what's stoking the overvaluation debate.

3. Peer deep dive: Gaonchips vs AD Technology

3.1 Gaonchips — the tech vanguard of Samsung Foundry

  • 2nm GAA wins: Won a turnkey project from Japan's AI unicorn PFN (Preferred Networks) on Samsung 2nm — Samsung Foundry's first global flagship 2nm reference. Korea's DeepX 'DX-M2' next-gen chip also on Samsung 2nm.
  • Japan strategy: Gaonchips Japan attacking non-memory demand — PFN is the proof.
  • Financials: 2023 sales KRW 63.6 bn, OP KRW 4.4 bn (profitable). 2024–2025 likely a temporary loss as advanced-node R&D peaks; explosive growth expected from 2026 as backlog converts to mass-production revenue.

3.2 AD Technology — economies of scale + infrastructure

  • Former TSMC VCA → moved into the Samsung ecosystem. About 500+ design engineers — best at executing massive projects.
  • Late 2023 won a 3nm server-grade chip project; in-housed interposer design targets the HPC market.
  • Turnaround in 3Q-2024: revenue KRW 75.5 bn, back to operating profit.

3.3 Three-way model comparison

ItemSemiFiveGaonchipsAD Technology
Core modelSoC Platform ProviderHigh-End Tech ServiceScalable Infra Provider
KeywordsAutomation · reuse · platformAdvanced node (GAA) · know-howLarge-scale infra · 2.5D packaging
CustomersAI startups · SMB fablessGlobal big-tech · AI / AutoServer / HPC · global majors
Position in Samsung FoundryEcosystem-expansion acceleratorPreferred 2nm/3nm advanced-node partnerExecutor of big server / HPC projects
Revenue mixLower NRE + high mass-prod royalty targetHigh NRE + steady mass-prodBalanced NRE + mass-prod
Headcount~350 (incl. IP sub)~250+ (expanding)~500+ (largest)
Three-way comparison and chiplet technology structure

4. Chiplets — the next battlefield

Chiplets replace monolithic dies with multiple dies combined in a single package — improving yield, lowering cost, enabling heterogeneous integration.

4.1 Gaonchips — commercialization frontline, "turnkey"

  • The PFN 2nm turnkey project includes Samsung's 2.5D package I-Cube S: logic + HBM on a silicon interposer. Targeting mass production by 2027.
  • Demonstrates capability across design → packaging → test as a packaging-solution provider.

4.2 AD Technology — infrastructure-led 2.5D/3D

  • Its 2023 3nm server project includes its own interposer design — taking the lead at the packaging stage.
  • Strong "big die" handling from its TSMC heritage.

4.3 SemiFive — IP-based platformization

  • In-house R&D project 'Premier' developing UCIe controller / PHY IP — the standardized chiplet interconnect.
  • Pre-research on 3D IC memory integration. US R&D center. Combined with subsidiary Analog Bits' interface IP, SemiFive aims to be the supplier of "chiplet building materials (IP)."

Interpretation: If Gaonchips and AD Technology are the construction contractors building chiplets, SemiFive is the building-materials (IP) supplier. Early revenue visibility is lower, but scalability is higher once the market matures.

Customer portfolios and revenue structures of the three DSPs

5. Customer base & revenue concentration

5.1 SemiFive — variety with concentration

Per the IPO prospectus, top-8 customer concentration in 2024 was 87.24%. Key customers: Rebellions, FuriosaAI, Mobilint. Export share rose to 21.26% in 9M-2025, yet performance is still tied to the success of Korean AI startups.

5.2 Gaonchips — global big-tech expansion

Steady cash cows in Korean automotive semis (Telechips, Nextchip) + the new global big-tech anchor PFN. A balanced two-axis exposure (auto + AI accelerators) — the highest-quality portfolio of the three.

5.3 AD Technology — overseas heavyweight customers

Built a memory-controller franchise with SK hynix; since moving to Samsung, secured (undisclosed) overseas server-grade big-tech customers. Server / HPC is less cyclical than mobile and locks in long-tail volume.

6. Conclusion — destiny tied to Samsung Foundry

The three-way split is set: "tech" Gaonchips, "scale" AD Technology, "platform" SemiFive. Their fates depend on Samsung Foundry SF2 success and 2.5D/3D advanced-packaging yields. If Samsung closes the gap on TSMC, the most technically intertwined Gaonchips reaps the earliest and largest reward.

  • SemiFive: armed with a platform innovation, but priced rich and still loss-making. Watch whether the chiplet-IP strategy lands.
  • Gaonchips: holds the strongest card — 2nm + chiplet mass production. Bet on the 2026+ acceleration rather than this year's numbers.
  • AD Technology: solid fundamentals at a depressed valuation. Server-market traction is the rerating key.

Sources

Naver original