S.Korean GS, Daebo invest in domestic AI semiconductor firm

South Korea's Sapeon, artificial intelligence (AI) semiconductor subsidiary of SK Telecom Co., said on Wednesday that it has signed a memorandum of understanding (MOU) for business cooperation with strategic investors, including GS Engineering & Construction Co., GS Neotec and Daebo Communication & Systems.

Sapeon was established as a joint venture by SK Square Co., SK Telecom, and SK Hynix Inc. In 2020, it launched its server AI semiconductor "X220." The company plans to release a new product "X330" during the first half of this year.

These strategic investors have joined Sapeon’s investment round, which is set to be concluded next month. Although the investment amount has not been disclosed, the company’s decision to invest was based on Sapeon’s technological capabilities, commercialization experience and future growth potential.

A Sapeon official noted that they expect to attract over 50 billion won ($37 million) in the latest investment round, with the company’s value anticipated to surpass 500 billion won.

Following the agreement, the four companies plan to collaborate on building AI service infrastructure in the public sector and explore new business opportunities in fields such as media, the Internet of Things (IoT), smart factories and data centers. They will form a joint consultation body to assess the AI-related requirements of each group’s affiliates and proceed with technology verification and commercialization.

Write to Seung-Woo Lee at leeswoo@hankyung.com