Abov Semiconductor has signed a deal to supply microcontroller unit (MCU) for smoke detection with a subsidiary of US firm Carrier.
The company will also sign a contract with Beijing Cycle Columbus Environmental Science and Technology to supply the MCUs within the month, people familiar with the matter said.
Abov began launching smoke detection MCU in 2019. It launched its first A96L322 chip in 2019. It launched two more the following year, AL1113 and A96L523. It launched another model, A96L533, during the first half of this year.
These chips combines the MCU with a telecommunication chip.
Abov expects to post meaningful sales from the sales of the chips beginning next year.
The smoke detection MCUs are used in systems to detect fires in buildings. The sensor tracks the temperature and alerts the network if it becomes higher than a set point.
Safety standards and authentications of such MCUs are strict and takes over six months as they are directly related to safety.
Abov is also expanding into automotive MCU and AI edge computing MCU sectors.
The company is preparing to supply a wireless charging MCU for phones to be used in automobiles.
It has also recently finished the development of parking assistance MCU as part of a project given by the South Korean government.
Is is aiming to supply edge computing MCU starting in 2024 at the earliest.
Abov currently relies on chip supply for home appliances and mobile for its sales.
It saw high demand for MCUs from appliances thanks to the COVID-19 pandemic that increased appliance purchases.
It supplies its chips to Samsung Electronics, LG Electronics, Winia, Winix and Philips.
The company recorded 40.9 billion won in revenue and 4.8 billion won in operating profit during the second quarter this year.