Korea’s AI Leaders Rebellions and Sapeon to Merge

Rebellions is poised to take the lead in an upcoming merger, with the financial specifics remaining undisclosed at this time. The CEO of Rebellions, Park Sung-hyun, is expected to assume the role of CEO in the merged entity, although a definitive name for the new company is yet to be determined.

Sapeon recently made a significant move by relocating its headquarters to San Jose, California, signaling a strategic shift in its operations.

SK Telecom, the parent company of Sapeon, has officially announced the merger of the two entities, citing the need to enhance their competitive edge in the intense competition for AI semiconductors in Korea. The consolidation of Sapeon and Rebellions is slated for completion by the end of September, with the merged corporation expected to be operational by the close of 2024, according to reports.

Sapeon, established in 2022 as a spin-off from SK Telecom, SK Hynix, and SK Square, focuses on the development of AI processors as a fabless company. On the other hand, Rebellions, founded in 2020 and affiliated with KT Corp., a prominent player in the data center industry, brings its own expertise and resources to the table.

In a significant development in November 2023, Sapeon introduced its X330 AI accelerator chip designed for data centers, utilizing TSMC's advanced 7nm manufacturing process. The company has also diversified its portfolio to include offerings in autonomous driving and edge services, showcasing its commitment to innovation and growth.

Rebellions recently secured a substantial investment of US$124 million in a Series B funding round at the beginning of 2024, positioning itself to compete with industry giants like Nvidia in the AI data center sector. The company, part of the burgeoning fabless Korean AI ecosystem supported by Samsung as a chip maker, plans to allocate the funding towards the development of its third AI processor, known as Rebel, tailored for running large language models.

The stakeholders of Rebellions and Sapeon are acutely aware of the competitive landscape and the urgency to act swiftly. SK Telecom has emphasized the next two to three years as the "golden time" for AI semiconductor competition, underlining the critical nature of the merger and its potential impact on the industry.

Following the merger, SK Telecom, along with other key investors such as SK Hynix, SK Square, and KT Group, have committed to supporting the merged entity in its quest to advance AI semiconductor technologies in Korea and safeguard technological sovereignty in the region.

For more information, visit the official websites of the companies: Sapeon and Rebellions.