Telechips Inc., a South Korean automotive semiconductor maker, reported a net loss for 2023 as the company ramped up spending on software-defined vehicle technology while grappling with declining sales.
Revenue dropped 2.3% to 186.6 billion won ($140 million) last year, while operating profit slumped to 4.9 billion won. The company cited increased hiring for new automotive chip development and losses from its stake in Chips&Media Inc. as key factors behind the weak performance.
The Seoul-based firm is expanding its semiconductor portfolio for next-generation vehicles, focusing on components for infotainment systems, digital cockpits, advanced driver assistance systems, and AI-powered network gateways. This push comes as traditional automakers worldwide transition toward software-centric vehicle architectures.
Despite domestic headwinds, Telechips saw sales growth in Japan, China, Thailand, and Malaysia. The company has been forging partnerships with technology firms in the US and Europe to develop customized high-performance solutions for global automakers.
A company representative said Telechips will prioritize early commercialization of new semiconductor products and strengthen collaboration with global clients this year. However, analysts remain cautious about the company’s near-term prospects given the sustained pressure on margins from development costs and uncertain automotive demand.
