South Korean AI Chip Leaders Unite for Global Dominance

South Korean AI chip pioneers, Rebellions Inc. and SAPEON Korea, have announced a significant merger. This move aims to enhance their global position in the AI semiconductor industry. The merger is set to be finalized this year, with the newly merged entity operating under the name “Rebellions.”

Rebellions, an AI chip startup founded in 2020, has made significant strides in the AI semiconductor field. Within three years, the company successfully launched two AI chips, raising over $225 million in funding. Recently, Rebellions began mass production of its AI chip, ATOM, and plans to introduce its next-generation AI chip, REBEL, by the year’s end.

On the other hand, SAPEON Korea, a company spun off from SK Telecom in 2016, has also made remarkable advancements. The company developed South Korea’s first AI semiconductor for data centers in 2020 and launched the next-generation AI chip, X330, last year. With this merger, the combined expertise of both companies will enhance their position in the neural processing unit (NPU) market.

Post-merger, SAPEON Korea will remain the surviving entity, while Rebellions’ current leadership will manage the merged entity. Park Sung-hyun, Rebellions’ CEO, will lead the new company. The merger is based on an equity value ratio of 2.4:1 between the two companies, reflecting their corporate values and assets.

To ensure stability, SAPEON’s shareholders, including SK Telecom, SK Square, and SK Hynix, will sell 3 percent of their SAPEON shares before the merger. SK Telecom will continue as a strategic investor, supporting the merged entity’s global expansion and solidifying South Korea’s leadership in AI chip technology.

This merger marks a crucial step in South Korea’s journey to extend its leadership from memory semiconductors to logic chips and AI. By joining forces, Rebellions and SAPEON aim to become a leading force in the competitive global AI chip market. With their combined development capabilities, the merged entity is well-positioned to navigate the challenges of the AI semiconductor industry.

As a result, the newly formed company is expected to drive innovation in AI semiconductors, enhancing South Korea’s competitiveness on the global stage. The merger highlights the commitment of both companies to invest strategically and collaborate in shaping the future of the AI era.