Why Samsung Is Backing a Korean AI Chip Startup

Samsung Ventures has invested in Rebellions, a South Korean AI chip startup. This move strengthens an existing manufacturing partnership between the two firms. The investment was part of a significant $250 million funding round.

This strategic funding solidifies Rebellions’ position as a key domestic player in the global AI semiconductor race. According to Reuters, the startup has now achieved a valuation of $1.4 billion, making it South Korea’s first AI chip unicorn.

Samsung’s Strategic Investment in AI Chip Development

Samsung Ventures participated in Rebellions’ Series C funding. Other major investors included chip design giant Arm and manufacturer Pegatron. This collective investment underscores strong industry confidence in the startup.

Rebellions is a fabless company, meaning it designs chips but does not manufacture them. This is where Samsung’s core business aligns perfectly with the startup. Samsung has been the manufacturing partner for Rebellions’ previous chip generations.

The South Korean tech giant produced 5nm chips for Rebellions in 2021. It later advanced to manufacturing 4nm chips in 2023. Samsung has also secured orders to produce next-generation 2nm chips for the startup using its Gate-All-Around (GAA) technology.

Rebellions Aims to Challenge AI Chip Giants

Rebellions focuses on designing specialized AI accelerators. The company aims to create more cost-effective and power-efficient chips. This is a direct challenge to the power-hungry designs of industry leaders like Nvidia and AMD.

The startup’s flagship product is the REBEL-Quad chip. This processor is specifically engineered for large-scale AI inference tasks. Inference is the process where a trained AI model makes predictions or decisions.

This investment highlights a broader trend of major tech firms backing specialized AI hardware. It helps ensure a supply of advanced, domestically-produced semiconductors. For Samsung, it secures a high-value client for its advanced foundry business.

This strategic investment by Samsung Ventures significantly bolsters Rebellions’ capacity to compete in the high-stakes global AI chip market, signaling a strong future for South Korean semiconductor innovation.

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What is Rebellions’ focus in the AI chip market?

Rebellions designs specialized AI accelerators. The company prioritizes creating cost-effective and power-efficient chips. Its flagship REBEL-Quad chip is built for large-scale AI inference workloads.

What was Rebellions’ valuation after this funding round?

Rebellions reached a valuation of $1.4 billion after the Series C round. This achievement made it South Korea’s first AI chip unicorn. A unicorn is a privately held startup valued at over $1 billion.

Who were the other investors in this funding round?

Other investors included chip architecture leader Arm and manufacturing firm Pegatron. Previous investors like Korea Development Bank also participated. The total Series C funding raised was $250 million.

How has Samsung worked with Rebellions in the past?

Samsung has a history of manufacturing chips for Rebellions. It produced 5nm chips for the startup in 2021 and 4nm chips in 2023. Samsung will also make its future 2nm GAA chips.

Why is this investment important for Samsung?

The investment deepens a key strategic partnership. It secures a leading-edge client for Samsung’s semiconductor foundry business. This helps Samsung compete in the advanced chip manufacturing sector.

Trusted Sources

Reuters