Fraunhofer IIS

What Fraunhofer IIS does

Fraunhofer IIS (Fraunhofer-Institut für Integrierte Schaltungen IIS) is the largest institute within the Fraunhofer-Gesellschaft, Europe's leading applied-research organization, founded in 1985 and headquartered in Erlangen, Germany, with a workforce in the 1,001–5,000 range. It operates seven divisions covering audio and media technologies, communications systems, development center X-ray technology, adaptive systems engineering, positioning and networks, smart sensing and electronics, and supply chain services, with additional offices in Dresden, Fürth, Nuremberg, Bamberg, Würzburg, Ilmenau, Munich, and international representative offices in Beijing, Tokyo, and Seoul. The institute is the originator of foundational digital media technologies — including the MP3 codec, AAC, MPEG-H Audio, JPEG XS, LC3/LC3plus, IVAS (3GPP Release 18), and the AI-based NESC voice codec — and holds co-author positions in 3GPP, MPEG, ITU, and Bluetooth SIG standards bodies, anchoring its IP across the global consumer electronics, broadcast, and telecom ecosystems.

The core product portfolio spans codec IP licensing (MP3, AAC/xHE-AAC, MPEG-H Audio, LC3/LC3plus, EVS, NESC, IVAS), the easyDCP digital-cinema software suite, JPEG XS SDKs for ultra-low-latency video-over-IP, the upHear AI audio-rendering family, HallinOne 3D Hall sensors, RFicient ultra-low-power receivers, the SENNA neuromorphic processor, mioty LPWAN, Galileo PRS receivers, satellite on-board processors, and industrial systems such as the GiantEye high-energy CT platform and the SeedTelligence seed-quality platform. Recent additions include the Teuken-7B European language model and the forthcoming Soofi industrial AI model. The business model combines three streams: technology and patent licensing royalties from a global base of manufacturers and semiconductor companies; direct software sales and subscriptions (notably easyDCP's hardware-independent subscription plans); and contract research with industry, EU, and government partners in domains including 6G, hybrid-electric aerospace, semiconductor manufacturing, and industrial AI.

Customers include Samsung, LG, Sony, Harman/JBL, ASUS, Corsair, Bang & Olufsen, Audeze, Creative, HyperX, Turtle Beach, Avid, NVIDIA, Cadence, Nokia, Ericsson, BMW, Avio Aero, GE Aerospace, Rapidus, Airoha, Zeiss, Viasat, Qualcomm, Cubic3, Skylo, and Sonnox, spanning consumer electronics, semiconductors, automotive, aerospace, broadcasting, telecommunications, and industrial inspection. Revenue figures are not publicly disclosed, and the institute operates as a nonprofit constituent entity of Fraunhofer-Gesellschaft, governed by a multi-director leadership team with Prof. Dr.-Ing. Bernhard Grill heading the Audio and Media Technologies focus.

Name

Fraunhofer IIS

Legal name

Fraunhofer-Institut für Integrierte Schaltungen IIS

Website

https://iis.fraunhofer.de

Company type

Private

Founded year

1985

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Fraunhofer IIS is Germany's largest applied-research institute, developing and licensing foundational audio, video, and sensor technologies (MP3, AAC, MPEG-H, JPEG XS, LC3) plus AI codecs and industrial imaging systems, serving global OEMs in consumer electronics, automotive, telecom, and aerospace.

Ownership category

akta.pro rank

Product category

Audio and Media Codec Technology

NAICS

Audio and Video Equipment Manufacturing (33431), Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing (334220), Navigational, Measuring, Electromedical, and Control Instruments Manufacturing (33451), Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing (334511)

SIC

Radio & Tv Broadcasting & Communications Equipment (3663), Household Audio & Video Equipment (3651), X-Ray Apparatus & Tubes & Related Irradiation Apparatus (3844), Instruments For Meas & Testing Of Electricity & Elec Signals (3825), Industrial Instruments For Measurement, Display, And Control (3823)

akta.pro primary industry

Audio & Voice Mixed-Signal ICs (Codecs/Amplifiers) (HDAHAIAG)

akta.pro secondary industries

Test, Measurement & Calibration Equipment Manufacturing Services (ATE, DAQ, metrology electronics) (IMAGAGAH), Microwave & RF Signal Chain ICs (Mixers/Detectors/Attenuators) (HDAHAMAL), Audio Plugins & Virtual Instruments (VST/AU/AAX) (MPAIAIAB)

Keywords

• Audio codecs
• Video codecs
• Semiconductor IP
• Wireless communications
• Sensor systems

Headquarters

HQ city

Erlangen

HQ country

Germany

HQ region

Europe

Offices14 records

Markets served

GTM type

B2B

Offering type

Software

Cost components

Personnel, Technology or R&D, Infrastructure, Operations, Marketing or Sales

Revenue model

1. Technology Licensing: Licensing of audio codec patents (MP3, AAC, MPEG-H, LC3, EVS) and video codec patents (JPEG XS) to consumer electronics manufacturers, semiconductor companies, and software developers worldwide
2. Software Licensing: Direct software sales including easyDCP software suite for digital cinema, JPEG XS SDKs, and other media processing tools with subscription and perpetual licensing options
3. Contract Research: Applied research contracts with industrial partners, government agencies, and international organizations for development of customized solutions in microelectronics, sensor systems, and communications

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels8 records

Core offering

Fraunhofer IIS develops and licenses audio and video codecs (MP3, AAC, MPEG-H Audio, LC3/LC3plus, NESC, IVAS, JPEG XS), AI-based audio technologies (upHear), digital cinema software (easyDCP), sensor and IC technologies (HallinOne, RFicient, SENNA), LPWAN communication (mioty), satellite processors, and high-energy CT inspection systems. It generates revenue through patent and software licensing, SDK sales, and contract research with industrial partners worldwide.

Product overview

Fraunhofer IIS operates as a portfolio of specialized research divisions offering a broad range of audio, media, communications, sensing, and semiconductor technologies. The core audio and media portfolio centers on successive generations of codecs: mp3, AAC family (including xHE-AAC), MPEG-H Audio (immersive/interactive/personalized audio), EVS, LC3/LC3plus (wireless audio), IVAS (3GPP immersive voice), and NESC (ultra-efficient AI voice codec at ~1 kbit/s). The digital cinema suite easyDCP handles DCP/IMP creation, playback, and QC, complemented by JPEG XS for ultra-low-latency video-over-IP. Consumer audio is served by the upHear family (AI-based microphone processing, spatial rendering, voice enhancement). In semiconductors and sensing, key offerings include IC design services, HallinOne 3D Hall sensors, RFicient ultra-low-power receivers, SENNA neuromorphic processor, the Bavarian Chip-Design-Center (BCDC), and GiantEye high-energy CT. Connectivity offerings include mioty LPWAN, Galileo PRS receivers, 5G/6G mobile systems, and satellite communications. AI capabilities span generative AI (Teuken-7B language model), neuromorphic computing (SENNA), AI-based codecs (NESC, upHear), edge AI, and the SeedTelligence platform. The institute is organized into seven research divisions: Audio and Media Technologies (AMM), Communication Systems (Kom), Development Center X-Ray Technology (EZRT), Engineering of Adaptive Systems (EAS), Positioning and Networks (LV), Smart Sensing and Electronics (SSE), and Supply Chain Services (SCS).

Differentiator

Problem solved

Functional benefit

Brands

• easyDCP: Digital cinema software suite for creation, playback and quality control of Digital Cinema Packages
• JPEG XS
• MPEG-H Audio
• LC3plus
• upHear
• IVAS
• NESC
• HallinOne
• RFicient
• mioty

Products and services

• MPEG-H Audio
• AAC (Advanced Audio Coding)
• mp3
• xHE-AAC
• LC3/LC3plus
• IVAS (Immersive Voice and Audio Services)
• NESC (Neural Enhanced Speech Codec)
• upHear
• easyDCP Software Suite
• JPEG XS Codec and SDK
• mioty LPWAN Technology
• HallinOne 3D Hall Magnetic Field Sensors
• RFicient Ultra-Low-Power Receiver Technology
• SENNA Spiking Neural Network Inference Accelerator
• GiantEye High-Energy CT System
• SeedTelligence Platform
• Teuken-7B Language Model
• Fraunhofer On-Board Processor (FOBP)
• Galileo PRS Receiver
• Bayerisches Chip-Design-Center (BCDC)
• Supply Chain Services
• Sonnox Pro-Codec Plug-in

Quantifiable outcome

• NESC voice codec achieves bitrates below 1 kbit/s for satellite communications
• +4 more outcomes

Named customers7 records

Segments6 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration24 records

AI capability27 records

Feature13 records

Partnerships

13 partnerships are on record, tiered core and minor.

• CEA-Leti, ImeccoreStrategic or Co-development Partner · 1 January 2026Joint leadership of RESOLVE project targeting 1,000-fold improvement in energy efficiency for electronic systems by 2032, as part of EU semiconductor initiatives.
• AvidcoreTechnology or Integration · 1 January 2026Native MPEG-H Audio integration into Pro Tools Studio and Pro Tools Ultimate, enabling immersive audio production within industry-standard DAW.
• Airoha TechnologycoreTechnology or Integration · 1 January 2026Integration of LC3plus codec and Cingo spatial audio technology with Airoha's AB1595 Bluetooth SoC platform for premium mobile and XR applications.
• LZE GmbH, Karl Kruse GmbH & Co. KGminorChannel Partner/ Reseller/ Distributor · 1 January 2026Distribution partnership for FH3D04 Quad 3D Hall sensor based on HallinOne technology, expanding market reach for 6D position measurement applications.
• Viasat, Cubic3, Qualcomm TechnologiescoreTechnology or Integration · 1 January 2026Demonstration of satellite-enabled voice calling for connected vehicles at MWC 2026, integrating Viasat satellite network with Fraunhofer IIS voice codec for driver safety and emergency access.
• Avio Aero, GE AerospacecoreStrategic or Co-development Partner · 1 January 2026Project AMBER - EU Clean Aviation initiative for hydrogen fuel cell hybrid-electric propulsion targeting 30% CO2 reduction for regional aircraft with entry into service by 2035.
• IQM Germany GmbH, OTH Regensburg, Siemens AGcoreStrategic or Co-development Partner · 1 January 2026Q-Genesys joint research project exploring practical industrial applications of quantum computing, combining quantum systems with generative learning for molecular design, process optimization, and smart grid energy distribution.
• NokiacoreTechnology or Integration · 1 January 2025Successful test of first interoperable immersive voice call over Nokia's 5G IMS network, demonstrating readiness for deployment.
• Nokia, Ericsson, Fraunhofer HHIcoreStrategic or Co-development Partner · 1 January 2025Joint partnership to advance next-generation video coding standardization for 6G era, developing new codec with higher compression efficiency than H.264/AVC, H.265/HEVC, and H.266/VVC.
• PhenoKey, phenoLyticscoreStrategic or Co-development Partner · 1 January 2025SeedTelligence platform providing comprehensive seed quality insights using advanced technologies like 3D X-ray CT for the seed lifecycle from R&D to sales.
• RapiduscoreStrategic or Co-development Partner · 1 January 2025Partnership with Japanese semiconductor consortium for 2nm chip development, providing development support and expertise.
• Cadence Design SystemscoreTechnology or Integration · 1 January 2025Fraunhofer upHear audio rendering technologies available on Cadence Tensilica HiFi DSP platform for consumer devices including true-wireless earbuds and smartphones.
• NVIDIAcoreTechnology or Integration · 1 January 2024JPEG XS integration in NVIDIA HoloScan for Media workflow for professional video processing.

Scale indicators4 records

Recent moves6 records

Expansion highlights7 records

Direct peers

• VoiceAge EVS: Co-developer of the EVS 3GPP voice codec and licensor of speech codecs, directly comparable to Fraunhofer IIS's NESC and IVAS voice codec portfolio for mobile and next-gen voice services.
• intoPIX: Belgian IP-core vendor of low-latency image and video compression (TicoXS, JPEG XS), a direct competitor and patent-pool partner of Fraunhofer IIS in the JPEG XS ecosystem.
• Dolby Laboratories: Licenses premium audio codecs (Dolby Digital, Dolby Atmos, Dolby Voice) and is the closest commercial competitor to Fraunhofer IIS's audio codec licensing business across broadcast, streaming and consumer electronics.
• Xperi (DTS): Audio codec IP company (DTS, HD Radio, IMAX Enhanced) directly competing with Fraunhofer IIS for licensing into TVs, soundbars, smartphones and automotive infotainment systems.
• BBC R&D: UK public-broadcaster research group working on audio coding (including contributions to Opus) and broadcast IP workflows, comparable to Fraunhofer IIS as a peer applied-research institute with codec standards work.
• Fraunhofer HHI: Sister Fraunhofer institute co-developing video coding standards (H.264/AVC, H.265/HEVC, H.266/VVC) and a joint partner with Fraunhofer IIS on the next-generation 6G video codec with Nokia and Ericsson.
• IRT (Institut für Rundfunktechnik): German broadcasting research institute collaborating on audio/video codec standards and broadcast workflow tools, with overlapping customer base among European public broadcasters and codec standardization bodies.

Others

• ETSI: Standards body distributing Fraunhofer IIS's LC3plus reference software; functions as an ecosystem enabler and distribution channel rather than a direct competitor.

Emerging players

• Xiph.Org Foundation: Stewards the royalty-free Opus and FLAC codecs; represents the open-source competitive alternative to Fraunhofer IIS's licensed audio codec business in streaming, conferencing and voice.

Broad incumbents

• Qualcomm Technologies: Develops aptX and voice codecs and ships them in Snapdragon SoCs, making it both a customer (NESC) and competitor to Fraunhofer IIS in the wireless and voice codec licensing market.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/user/FraunhoferIIS
• Facebookfacebook.com/fraunhoferde
• LinkedInlinkedin.com/company/fraunhofer-iis
• Xx.com/fraunhoferiis

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about Fraunhofer IIS