Under the terms of the agreement, key areas of alignment include the scope of the intellectual property license, a cumulative financial structure supporting enhanced modification rights, and standard legal provisions regarding confidentiality and technical support. Together, these elements are designed to provide clarity, flexibility, and scalability as both companies drive their long-term joint growth and innovation.

The IP Licensing Framework Agreement has three main objectives. First, it establishes a comprehensive legal framework to govern both current and future licenses between the parties. Second, it grants LTSCT the necessary rights to integrate Andes' RISC-V technology into its products, thereby accelerating development and commercialization efforts. Third, it introduces a structured, cumulative business model that defines a clear progression toward broader modification rights for LTSCT as the alliance evolves.

Commenting on the agreement, Sandeep Kumar, CEO of LTSCT, stated:
“This agreement lays the foundation for a long-term strategic alliance based on shared priorities around innovation, operational efficiency, and disciplined execution. By combining a clear and scalable legal framework with a future-oriented business model, we facilitate faster collaboration, more predictable IP deployment, and better alignment between technology development and business outcomes. This structure positions both LTSCT and Andes to offer differentiated solutions, strengthen value propositions for customers, and compete more effectively in an increasingly complex semiconductor market.”

Frankwell Jyh-Ming Lin, CEO of Andes Technology, added:
“We are pleased to have reached this agreement with LTSCT, which establishes a clear and scalable framework for long-term collaboration. By aligning our IP assets with LTSCT’s product and market strategy, the agreement enables faster execution, greater flexibility, and expanded business opportunities, ultimately delivering greater value to the entire semiconductor ecosystem.”

The agreement is expected to generate significant benefits for both the semiconductor ecosystem and end customers. By accelerating LTSCT's ability to develop, customize, and commercialize advanced devices using cutting-edge IP, the collaboration aims to drive innovation, reduce time to market, and potentially lower overall development and production costs.