- World-class next-gen AV2 HW IP confirmed for future flagship devices of a major North American client
- Achieving ‘Consecutive Licensing’ based on long-term partnership with North American Big Tech, validating unrivaled technical trust
- Chips&Media emerges as a key partner for next-gen video standardization amidst the AV ecosystem expansion led by YouTube and Netflix
SEOUL, South Korea, June 25, 2026 (GLOBE NEWSWIRE) — Chips&Media (CEO Steve Kim, KOSDAQ: 094360), a leading global provider of video IP technology, announced today that it has signed a licensing agreement for its next-generation high-efficiency video CODEC, AV2 (AOMedia Video 2) decoder IP, with a world-renowned North American Big Tech company. This licensing includes multi standard video codec IP, H.264/AVC, H.265/HEVC, AV1 together with AV2. This deal positions Chips&Media at the epicenter of the global video standards competition, further solidifying its market dominance.
Accelerating AV2 Ecosystem Expansion: Consecutive Licensing Success with North American Big Tech
This agreement goes beyond a one-time transaction; it is a significant milestone representing consecutive licensing success built on a strategic partnership with a long-standing North American Big Tech client. Following the previous APV (WAVE-P) CODEC agreement, the sequential adoption of the next-gen AV2 standard proves that Chips&Media’s technology is an indispensable element in the client’s future flagship roadmap.
As the AV CODEC ecosystem—driven by global OTT giants like YouTube (Google) and Netflix—expands rapidly, the choice of Chips&Media’s independent AV2 HW IP by a leading North American tech giant will further accelerate next-generation video standardization across the entire Android and edge device ecosystem.
Strategic Collaboration and Contribution to the AOM (Alliance for Open Media) Ecosystem
As a key member of AOM, Chips&Media has maintained a close collaborative relationship with the organization for several years. Having already successfully commercialized and deployed AV1 encoder and decoder IPs in the global market, Chips&Media is contributing significantly to the expansion of the open, high-efficiency video ecosystem by proactively developing and supplying the AV2 decoder. By responding swiftly from the standard finalization stage, Chips&Media plays a pivotal role in enabling partners to adopt the latest CODEC technologies with maximum stability.
Driving Video Innovation in Future Flagship Devices: 8K High-Resolution and Optimized HW Design
The licensed AV2 IP is expected to be deployed in the flagship devices of the North American client soon, providing an unmatched user experience in ultra-high-resolution environments.
- Implementing Technical Superiority of AV2: The next-gen AV2 standard improves compression efficiency by approximately 20-30% compared to AV1, allowing the transmission of the same quality video with less bandwidth. Chips&Media efficiently implements the complex coding tools introduced in AV2 within its hardware architecture, ensuring visually lossless ultra-high-definition video while reducing the data transmission burden.
- WAVE IP’s High-Efficiency Design (Area & Power Optimization): Chips&Media’s ‘WAVE’ series targets industry-leading low-power and ultra-compact design. It minimizes hardware area, increasing SoC design flexibility for customers even in high-performance 8K@60fps and 4K@240fps environments, and drastically reduces power consumption through algorithm optimization. This enables stable high-resolution video processing even in heat-sensitive mobile and edge devices.
- Flexible Multi-core Configuration: Beyond maximizing single-core performance, the multi-core architecture allows for customizable configurations based on the customer’s required performance, providing broad scalability from high-end smartphones to professional video equipment.
Strengthening Global Leadership and Market Expansion
This licensing deal proves that Chips&Media’s technology is a cornerstone of the global standard ecosystem. Notably, the client is a long-standing partner that has utilized Chips&Media’s IP for years; this AV2 agreement is set to further solidify their strategic collaboration.
Steve Kim, CEO of Chips&Media, stated, “If we opened the door to the professional video market with the previous APV CODEC agreement, this AV2 licensing confirms that we have secured full leadership in the next-generation global standard video market alongside our North American Big Tech partner.” He added, “Based on our proven expertise and trust, we will create synergies that benefit the global AI and video industries and continue to expand our dominance in the global market.”
About Chips&Media Inc.
Chips&Media is a multimedia IP leader offering HW video codec IP, image processing NPU, lossless/lossy frame buffer compression IP and more. Since 2003, Chips&Media has exclusively focused on the HW video codec IP industry. It has powered over 3,000,000,000 units in the market, adopted by more than 150 semiconductor companies. Chips&Media’s video codec IP supports all major and legacy formats from 1080p up to 8K 120fps, including HEVC/H.265, AVC/H.264, AV1, AV2, VP9, APV, VVC, JPEG and others. The recent introduction of our image processing NPU IP is transforming Chips&Media into a premium multimedia IP provider. It is a custom NPU designed to work for imaging applications at high-quality and high-resolution in edge devices.
For more information, please visit our website at www.chipsnmedia.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cc4d57ea-8ba0-4ed7-a1e6-a9852c217ea2