S. Korea – AI chip firms face make-or-break year as global sales prove crucial
Without overseas traction, startups risk stagnation or forced exits in a cash-hungry industry
South Korean AI chipmakers, including Rebellions, FuriosaAI, and DeepX, are set to be tested on the global stage this year, with their long-term growth prospects hanging in the balance.
With a limited domestic market, overseas sales are crucial for South Korea’s fabless semiconductor firms—not only to generate revenue but also to attract further investment, industry executives say.
DeepX, which is set to begin mass production of its first neural processing unit (NPU) this month, is intensifying its global marketing push. FuriosaAI is preparing to expand sales of its second-generation AI chip, Renegade (RNGD), ahead of mass production in the third quarter. Meanwhile, Rebellions, which has already generated revenue in Israel, the U.S., and Saudi Arabia, is working with Samsung Electronics to ramp up production of its AI chip “Rebel” for large language model (LLM) inference.
Despite technological advancements, securing long-term investment remains a critical hurdle for South Korea’s AI chip startups, which face a tougher funding environment compared to their global competitors. While U.S. AI semiconductor firms benefit from strong venture capital support and government-backed initiatives, South Korean startups struggle with limited domestic funding sources.
Jeong Young-beom, managing director at FuriosaAI, said at a recent parliamentary forum on AI policy,
We would prefer investment over acquisition, but it’s difficult to raise the necessary funds domestically,
“No decisions have been made yet regarding a potential sale, and all options remain open.”
The person said,
AI semiconductor startups, including FuriosaAI, are facing significant difficulties,
“Without large-scale funding, companies with potential may be forced to sell or shut down before fully realizing their capabilities.”
DeepX has secured over 150 billion won ($113 million) in funding but now faces a critical test as its first mass-production chip, the DX-M1, competes in the global market. The company is targeting clients across China, the Middle East, Taiwan, Europe, and the U.S., particularly in the embedded AI sector. It also aims to expand into server-grade NPUs, a move that will require strong supply records and industry adoption.
Industry experts highlight the importance of U.S. partnerships and market entry. To strengthen its presence, DeepX recently appointed Jeon Jae-du, a former NXP product marketing director, as head of its U.S. operations. Jeon, a veteran with over 20 years of experience at ST-Ericsson, Texas Instruments, and NXP, brings expertise spanning mobile, automotive, and home entertainment hardware.
Meanwhile, Rebellions, which merged with Sapeon last year, has secured an additional 20 billion won ($15 million) investment from Saudi Aramco, bringing its total funding to 300 billion won ($226 million). The company has begun supplying rack-based AI chips to Aramco’s data centers and plans to expand its data center business, with a Saudi subsidiary set to launch in the first half of the year. Rebellions aims to complete the development of its next-generation AI chip, Rebel, by year-end, with sample production expected in June.
Yoon Sung-roh, a professor of electrical engineering at Seoul National University, said :
For these companies to thrive, they need a strong presence abroad,
“Relocating headquarters overseas or even seeking a Nasdaq listing could be bold but necessary moves.”
While South Korea’s startup ecosystem has improved, limitations remain,
He added,
There are still significant constraints in the domestic market.
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S. Korea – AI chip firms face make-or-break year as global sales prove crucial, source
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