Semifive Files for Pre-IPO Review to Tap Rising Demand for Semiconductors

Semifive Inc., a chip design firm, has filed a preliminary application for an initial public offering (IPO) in Seoul to tap rising demand for semiconductors in AI fields. Founded in 2019, Semifive has raised $172 million and seen sales jump 57% last year to $111.8 billion. The company has acquired Analog Bits Inc. and is developing a chiplet platform based on Arm Holdings architecture.

Semifive Inc., a South Korean chip design firm, has filed a preliminary application for an initial public offering (IPO) in Seoul, aiming to tap into the rising demand for semiconductors in artificial intelligence (AI) fields. The company's move follows a strong year of growth, with sales jumping 57% to 111.8 billion won in 2024, and a significant acquisition that could bolster its position in the market [1].

Founded in 2019, Semifive has evolved from a company that bridges design firms and foundries to a provider that covers a larger part of the semiconductor value chain, from design and intellectual property integration to mass production. The company has secured funding from prominent investors, including Temasek Holdings Pte.'s Pavilion Capital, Korea Investment Partners Co., and Doosan Tesna Inc., totaling 240 billion won ($172 million) [1].

One of Semifive's key strategic moves was the acquisition of Analog Bits Inc., a Sunnyvale, California-based provider of intellectual property used by major semiconductor manufacturers like Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co., and Intel Corp. This acquisition has enabled Semifive to develop a chiplet platform based on Arm Holdings Plc architecture, which is designed to capitalize on the growing demand for custom-designed semiconductors [1].

The AI semiconductor market is experiencing explosive growth, driven by the integration of AI into various sectors such as data centers, enterprise edge computing, personal devices, and the Internet of Things (IoT). By 2025, the AI semiconductor market is projected to exceed $150 billion, representing over 20% of global chip sales [2]. This growth is creating a significant opportunity for companies like Semifive, which are focused on AI inference and high-performance computing (HPC) solutions.

Semifive's platform-based approach to custom silicon design addresses critical pain points in the industry, such as high development costs and lengthy timelines. The company's reusable, automated design platform leverages pre-validated IP pools and modular architectures to cut development timelines by 30–50% and reduce costs by up to 40% [3]. This efficiency is particularly valuable in the AI semiconductor space, where rapid iteration and specialization are key.

Semifive's strategic positioning and growth prospects make it an attractive investment opportunity for those seeking exposure to the AI semiconductor market. The company's partnerships with fabless firms like FuriosaAI and Mobilint further underscore its ability to scale and provide a pipeline for recurring revenue through design and IP licensing [3].

However, the semiconductor industry is known for its cyclical nature, with nine contractions in the last 34 years. Semifive faces challenges such as a talent shortage, rising costs for advanced node production, and geopolitical tensions that could disrupt supply chains. Despite these challenges, the company's pricing power and strategic positioning in the AI semiconductor market suggest it can navigate these headwinds.

For investors, the key question is whether Semifive's current valuation offers sufficient upside given its strategic positioning. With a 30% revenue growth forecast for 2025 and a global expansion plan that spans a decade, the company is building a moat around its leadership in AI semiconductors. While the stock may not offer the explosive returns of some AI-focused rivals, it provides a more stable, capital-efficient path to participating in the AI revolution [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-18/chip-designer-semifive-files-for-pre-ipo-review-in-south-korea
[2] https://www.ainvest.com/news/ai-driven-semiconductor-growth-implications-tsmc-global-tech-demand-2507/
[3] https://www.ainvest.com/news/semifive-pre-ipo-filing-krx-strategic-entry-public-market-2507/