[Click eStock] "Zinitix Accelerates New AI Infrastructure Business in China...Over KRW 15 Billion in New Sales Expected Next Year"

Zinitix is set to embark on a phase of robust performance growth by adding high value-added products such as TDDI and an AI infrastructure business in China to its existing touch IC business. In particular, the AI infrastructure business, which the company is pursuing through its local subsidiary in China, is expected to generate new sales of more than KRW 15 billion next year, raising the possibility of a revaluation of the company’s corporate value.

Yongho Kim, an analyst at independent research firm ARC Research, stated in his report on Zinitix, "Building on the stable market position of its existing touch IC business, the mass production of TDDI and the new AI infrastructure business have become new growth engines," adding, "If the business proceeds as planned, we expect sales of more than KRW 15 billion solely from the AI infrastructure business next year."

Zinitix is a fabless company that develops interface semiconductors used in touch sensing, haptic actuation, and power management. The company is expanding its applications beyond smartphones and wearables to include laptops, tablets, automobiles, and home appliances.

The core touch IC business has built a stable growth foundation by expanding its customer base and product portfolio. Since 2023, Zinitix has supplied touchpads for laptops to global set makers, maintaining more than 60% market share within its main client base, and from 2024, the company has begun supplying all book cover models for tablets. As touch-based human-machine interfaces (HMI) are expanding to a wider range of devices, the addressable market is also broadening.

Among Zinitix's new products, TDDI stands out. TDDI is a product that integrates touch IC and display driver IC (DDI) into a single chip, allowing for a higher average selling price compared to conventional touch ICs.

Zinitix, together with a specialized display driver IC company, has completed the development of a TDDI prototype and aims to begin mass production within the year.

Analyst Kim noted, "If mass production of TDDI gets fully underway, it is expected to enable an increase in average selling price as well as sales volume, compared to the existing touch IC business."

The AI infrastructure business in China represents another growth pillar. On August 25, Zinitix decided to acquire a 100% stake in Zinitix IntelliCompute Technology (ZIT) and is moving forward with establishing a local subsidiary in China.

Through ZIT, Zinitix plans to provide a full-stack AI solution that combines hardware and software, including AI Books and AI Boxes (AI computing devices), AI smart glasses, on-premises AI knowledge management systems, and computing power servers. The main targets are the enterprise B2B and B2G markets in China, such as smart factories and smart cities.

The business model has also been structured to reduce the burden of initial investment. Zinitix and ZIT will handle product planning and development, while actual production will be outsourced to local partners in China. This approach is expected to minimize fixed costs compared to directly establishing manufacturing facilities, thereby enabling profit leverage as sales increase down the line.

ZIT is expected to be fully established by early September, with initial sales potentially starting as early as the fourth quarter of this year. If the business proceeds according to plan, it is projected that new sales of more than KRW 15 billion from the AI infrastructure segment alone will be possible next year.

Analyst Kim commented, "Zinitix has secured new growth pillars, not only by expanding into new applications for its touch IC business and ramping up mass production of TDDI, but also by advancing into the AI infrastructure sector in China." He added, "Given the stability of the company’s semiconductor business combined with the growth potential of the AI sector, attention should be paid to the prospect of performance growth and a possible revaluation of the company going forward."

This content was produced with the assistance of AI translation services.