KUALA LUMPUR (May 25): Oppstar Bhd (KL:OPPSTAR) has refined the delivery structure of an artificial intelligence (AI) chip development project awarded by a Yokohama-based client in March, with its wholly owned subsidiary Oppstar Microelectronics Sdn Bhd entering into a separate US$2.9 million (RM13.6 million) design services agreement for its portion of work.
Meanwhile, Oppstar Microelectronics has entered into a design service agreement with the same client on May 25 for a specific engineering and design migration scope related to the project.
The contract carries a total design service fee of US$2.9 million, payable progressively based on milestone completion, and is expected to be fulfilled within 20 months, according to its bourse filing.
In a separate bourse filing, Oppstar said Oppstar Microelectronics and Silicon X had mutually terminated a statement of work (SOW) with the client that was originally signed on March 31, 2026.
The termination was undertaken following an operational review of workflows under the original tripartite arrangement, with both parties agreeing to replace the structure with separate agreements covering their respective scopes of work.
Oppstar said the restructuring is intended to provide a clearer project delivery framework, improve reporting lines and enhance project management efficiency, while enabling the group to deploy its engineering resources more effectively.
The client is a technology venture based in Yokohama, specialising in edge AI solutions.
It develops proprietary hardware designs and software tools that enable complex AI models to run directly on devices for real-time processing, particularly in infrastructure and industrial automation applications.
Under the newly signed design service agreement, Oppstar Microelectronics will be responsible for the full-spectrum chip design and physical implementation of a reconfigurable AI chip solution, including architecture optimisation and delivery of the final tape-out database.
Oppstar said any changes to the project scope that affect engineering effort or timelines would require written amendments and revised commercial terms agreed upon by all parties.
The client may only terminate the agreement after the completion of the multi-project wafer (MPW) phase and must provide at least three months’ written notice before termination takes effect.
The chip designer said the collaboration is expected to create a new revenue stream and strengthen Oppstar’s presence in the fast-growing edge AI and advanced integrated circuit (IC) design migration markets.
“The board believes that the collaboration has potential and would contribute positively to Oppstar’s future earnings and improve its financial position,” the company said.
Oppstar’s share price has taken a roller coaster ride amid the global bullish sentiment on AI-related companies.
The stock more than tripled from around 35 sen to a peak of RM1.05 on May 19 before paring some gains to close at 63.5 sen, giving the group a market capitalisation of RM408.6 million.