ASICLAND Going for an IPO in The Second Half of Next Year... “Aiming Sales to $84 Million~$1.05 Billion”

Interviewed CEO Jongmin Lee, ASICLAND

Selected Samsung Securities as a lead underwriter

Planning IPO in July ~ Aug next year after an external audit

“Estimating more than double sales next year”

ASICLAND, a semiconductor design house, is planning an IPO in the second half of next year. Samsung Securities has been selected as the lead underwriter and the company is now choosing an accounting firm to conduct external audits. As soon as ASICLAND completes its IPO next year, it intends to focus on overseas markets. 

CEO Jongmin LEE recently met with ‘The-Elec’ and announced that it has begun for the IPO to occur in July or August 2023.

According to CEO Jongmin Lee, "We selected the lead underwriter a year ago and we are working on the IPO step by step." He added, "When specific figures are released after selecting an accounting firm for external inspection, all applications for a preliminary listing review will be completed."

ASICLAND, which was established in 2016, is a semiconductor design house. The design house serves to redesign the semiconductor design drawing as a manufacturing drawing, acting as a bridge that connects foundry companies and fabless companies.

ASICLAND is drawing attention in the semiconductor industry because this company is one of Taiwan's TSMC's value chain partners (VCA). There are currently only eight TSMC VCAs based on global standards. Moreover, only six of them are exclusively specialized in the design, including Taiwan's GUC and Alchip.

ASICLAND, selected as a VCA of TSMC, has been growing twice as fast every year. The company sold 45.3 billion won last year, and now it is expected to sell around 80 billion won. Some of next year's forecast has also been outlined thanks to the fact that the project will be completed within about two years. According to the company, sales will reach 120 billion won to 150 billion won ($84 Million ~ $ 1.05 Billion) next year.

CEO Lee said, "We keep receiving orders from various domestic and foreign customers based on TSMC's advanced processes such as 7nm and 12nm," and added, " According to our plans goes well, sales will exceed double next year compared to this year."

The strong point that sets ASICLAND from other design houses is it serves a turnkey solution from development to mass-production, which the industry calls ‘Level 0 service’. Typical design houses serve ‘back-end service’, including back-end design, package, and test. On the other hand, ASICLAND, since founded, covers all processes from the initial development to the front-end, back-end, test, and mass-production.

ASICLAND distinguishably has a lot of experience many years since it was founded, despite other design houses following this business model as well. This fact gave them connections with Korea’s leading network enterprise and various companies developing such as AI semiconductors, display driver ICs, and Nand flash driver ICs.

Lee dreams of two main blueprints after the IPO. The first step is to expand overseas. In order for TSMC VCAs to expand overseas, they need strict requirements. To open an international branch and start a business, they need some licenses from TSMC. A company can only receive a license if it has been recognized and verified for a certain amount of time. It is possible, however, for VCAs to operate without international branches if international customers contact them directly.

Lee said, “We are planning to acquire an overseas market license from TSMC after the IPO” and added, “We got a call from some new customers from US and China and is in talk as of the moment.” It means preparations for international markets have been all set up.

Secondly, the goal is to secure quality human resources. The plan is to set up over 250 personnel by the end of next year, up from 150 employees presently together with the subsidiaries, which is a huge leap in 6 years. CEO Lee said “Alchip, a global design house, has about 400 employees and is valued at $2 Billion. We have a long-term vision to be a global Big 5 player in the design house business such as GUC or Alchip.”