Shenzhen Yitoa Intelligent Control (300131.SZ) plans to sign a cooperation agreement with Synopsys to obtain authorization for several of Synopsys' automotive DDIC and automotive TDDI series products.

Shenzhen Yitoa Intelligent Control (300131.SZ) announced that, in order to accelerate the company's product layout in the automotive display field and speed up the marketization process of automotive display chip products, the company plans to sign a cooperation agreement with Synopsys to obtain authorization for several of Synopsys' automotive DDIC and automotive TDDI series products, including the manufacturing and sales rights for this series of products and their derivative products, and the company has the right to use Synopsys' supply chain partners for this series of products. The scope of the granted license includes the company and some of its consolidated subsidiaries. The relevant products under this authorization are mature products, and the sales peak period for existing stock projects is approximately 3-4 years. This authorization is a global exclusive license, with a term of 15 years and a licensing fee of US$20 million. After the products enter sales, the company shall pay the licensor a royalty on a quarterly basis based on a certain proportion of net sales. The core purposes of this cooperation are as follows: on the one hand, by entering the supply chain of a leading global automaker through large-volume similar business, it is expected to accumulate customer resources and project track records for its own display driver chip business; on the other hand, if rapid large-scale volume ramp-up can be achieved, the company can use the incremental procurement scale to enhance its bargaining power with wafer fabs, packaging and testing houses, and third-party IP suppliers, thereby reducing the unit cost of its own products. In addition, the company can also use the cash flow, customers, and supply chain resources from the undertaking business to feed back into its self-developed products, accelerating the volume ramp-up of its own display chip business and the building of team capabilities.