AP Memory will focus more on its IP licensing services and customized offerings to improve its margin performance this year, according to the memory IC design house.

AP Memory will complete its inventory correction by the second quarter, and then will see its gross margin pick up, the company indicated.

PSRAM is AP Memory's major offering for customized solutions, while its standard products are designed for profitability. With its newly-added IP licensing business, AP Memory is gearing up for AI and other emerging technology applications.

AP Memory said its customized offerings are targeting wearable device and IoT applications, while feature phones now account for less than 30% of its total revenues generated from the segment.

As for IP licensing, AP Memory is working with multiple IC design houses as well as OEMs on AI and other emerging applications.

By enhancing the competitiveness of its customized offerings and IP licensing, AP Memory expects to further improve its product mix for higher margins.

AP Memory also plays a part in parent company Powerchip Technology's "Computing in Memory" technology platform, which was introduced in late 2019. The integrated technology can be applied to applications such as cloud servers, edge computing, IoT, autonomous driving and robots.

By: DocMemory
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