Founded in 2002, first-generation Korean semiconductor design house Alphachips is riding the artificial intelligence (AI) tailwind and entering a recovery in results. Alphachips is a design solution partner (DSP) of the Samsung Electronics foundry (contract chip manufacturing) business unit and holds the most mass-production records (35 cases) among Korean design houses. A design house serves as a bridge that optimizes schematics designed by fabless companies (chip design companies) into data that can actually be mass-produced to match the foundry's advanced process.
Alphachips also went through a dark period in recent years, in step with the slump at the Samsung Electronics foundry business unit. Alphachips' sales and operating loss last year were 85.3 billion won and 2 billion won, respectively. But this year, as chip manufacturing demand has surged sharply with AI industry growth, it has fired a signal flare of revival together with the Samsung Electronics foundry business unit. On the 3rd of this month, Alphachips disclosed that it signed a foundry supply contract worth about 24 billion won with GCT Semiconductor, a U.S. communications chip specialist.
Goh Hyeong-jong (57), appointed in March as the new general manager to lead Alphachips' resurgence, met with ChosunBiz at Alphachips' headquarters in Seongnam, Gyeonggi, on the 7th and said, "Considering the client volumes that will go into full mass production this year and the AI-related orders under discussion, sales are expected to top 100 billion won and operating profit to swing to the black," adding, "By 2030, we will surpass 300 billion won in sales and become a design house with global competitiveness."
Goh is one of Korea's top system semiconductor experts, with experience spanning system chip design and process, memory semiconductors, and academia. After graduating from Ajou University's Department of Electronic Engineering and earning a master's and doctorate in electrical, electronic, and computer engineering from the University of Florida in the United States, Goh joined Samsung Electronics and served as an executive in every business unit of the Samsung Electronics Device Solutions (DS) division. After leaving Samsung Electronics, Goh also worked as a professor in the Department of System Semiconductor Engineering at Yonsei University.
Goh said, "For a design house to support fabless companies, it must have an understanding of semiconductor design and process, as well as the memory semiconductors that go into them," explaining, "As a Samsung Electronics DSP who has rotated through all the business units, I joined because I thought that experience would help Alphachips."
Alphachips said it will target the AI market with a design platform built on its record of the most mass productions in Korea. Goh said, "Since its founding in 2002, Alphachips has 35 mass-production records. It is the most among domestic DSPs, and our competitiveness lies in supporting clients in a customized way through the design platform we have built from this." The following is a Q&A with Goh.
— Design houses have recently been focusing on the AI industry. What is Alphachips' strategy?
"As AI is increasingly applied across all industries, including data centers, automobiles, and Robotics, demand for chip manufacturing is rising sharply. Some large fabless companies have not only design capabilities but also mass-production experience, while startups targeting specialized markets are also jumping into AI. Alphachips plans to attack the market by providing customized solutions from large fabless companies to startups."
— What is Alphachips' differentiated edge?
"Alphachips has the most mass-production experience among domestic design houses. Even if a design house secures a client, in many cases it ends with developing the chip. But Alphachips has completed 35 projects through mass production, building a wide range of references—that is our strength. We can provide end-to-end support as a 'one-stop solution,' from design assets (IP) and design optimized for client demand to testing and mass production. This shortens development timelines and is our competitive edge."
— What sets you apart in the AI market?
"Alphachips is strong in low-power design. Many of the 35 mass-production projects are related to mobile. Mobile must deliver high performance in the consumer's hand, making low-power design essential. The same goes for AI, where low-power design is important. AI uses data on a different scale than before, and this process generates significant heat. Design capabilities to reduce this are crucial, and Alphachips' strength is being able to provide optimal solutions based on our accumulated experience."
— What are the specifics of the order pipeline?
"While I can't disclose client names, AI-related chip projects using Samsung Electronics' 4-nanometer (nm; one-billionth of a meter) and 2-nm processes are under discussion. I expect talks on this year's orders to wrap up, with development to begin. The development timeline is fast, so mass production could start as early as next year. We are moving to secure orders across the board, from Samsung Electronics foundry's advanced processes at 3 nm or below to the proven-profitable range of 4–8 nm."
— You said you will target the global market.
"We have completed preparations to target the U.S., China, and Japan markets and are discussing orders. We are putting particular effort into securing U.S. clients. Many U.S. fabless companies use competing foundries, and we are working to switch them to the Samsung Electronics foundry business unit. Some Samsung Electronics foundry processes are comparable to those of competitors and have price competitiveness. We are leveraging these advantages to drive sales."
— What are your mid- to long-term goals?
"Our goal is 300 billion won in sales by 2030. If we return to profit this year and our order backlog builds and performance grows, I believe our market capitalization will be re-evaluated accordingly. AI is creating opportunities in the system semiconductor industry. We will spare no effort to ensure that clients in the global market accurately understand Samsung Electronics foundry processes and receive customized solutions. From large fabless companies to startups, we will stand out in the market as a design platform that can intensively support the services they need."