GCT Semiconductor (GCTS) Sidoti Small-Cap Virtual Investor Conference summary

Company overview and market positioning

• Focuses on design, marketing, and sale of 4G and 5G chipsets, not manufacturing.

• Supplies chipsets to device suppliers for global operators like Verizon and AT&T.

• Holds a large patent portfolio in CMOS, multi-antenna, modem, and RF technology.

• Positioned as a key alternative to Qualcomm, especially in non-smartphone segments.

• Transitioning from 4G to 5G, targeting applications like FWA, mobile broadband, and industrial use.

Industry trends and growth drivers

• 5G adoption is accelerating, with FWA connections expected to grow from 36M in 2023 to a majority of 300M by 2028.

• Broadband data, not smartphones, is now the main growth driver for operators.

• Market consolidation and geopolitical factors have reduced the number of 5G chipset suppliers.

• 5G chipsets command higher ASPs, rising from $10 to $40, creating a revenue inflection point by 2025.

• Political and infrastructure tailwinds are supporting 5G expansion globally.

Competitive landscape and technology

• Few competitors remain in the 5G space; Qualcomm is the dominant player, with others focusing on different regions or segments.

• Multi-antenna (MU-MIMO) technology is a key differentiator, improving network efficiency and throughput.

• Longstanding relationships with major operators, including a development agreement with Verizon for 5G.

• 4G chipsets will continue for legacy applications, but future development is focused on 5G.

• Uses Samsung’s 8nm process for 5G chipsets, ensuring first-tier foundry support.