Valens Semiconductor (VLN) Investor Update summary

Automotive design wins and market opportunity

• Secured three automotive design wins from leading European OEMs for VA7000 MIPI A-PHY chipsets, with SOP in 2026 and estimated annual production of 500,000 vehicles.

• Expected to generate over $10 million in annual revenue for 5-7 years upon commercialization ramp-up, based on OEM production projections.

• The design wins validate the resilience and EMC immunity of the technology, which is critical for ADAS safety systems.

• Collaborated with leading Tier-1s on both camera and SoC sides, with native A-PHY support now available in their platforms.

• Each vehicle may use multiple sensors, increasing the revenue potential per car as adoption expands within models and across OEM lines.

Technology differentiation and competitive advantage

• The technology provides robust immunity to electromagnetic interference, outperforming competitors by up to 20 times in resilience.

• Enables use of longer and less expensive cables, reducing costs and weight for OEMs while maintaining system reliability.

• The chipset includes transmitters at the sensors (cameras or radars) and a multi-port receiver near the ECU, supporting scalable sensor configurations.

• Demonstrated significant value to OEMs and Tier 1 partners, overcoming industry incumbency through clear technical superiority.

• Selection followed extensive testing, with Valens' A-PHY solution deemed superior in bandwidth, link distance, and electromagnetic noise immunity.

Strategic positioning and industry validation

• Design wins validate Valens as a key supplier for ADAS connectivity and reinforce MIPI A-PHY as the industry standard for next-generation sensor connectivity.

• Industry leaders and board members highlight the significance of a resilient, high-performance connectivity standard for automotive applications.

• Company leadership expresses confidence that these achievements will accelerate broader industry adoption.

• The solution is positioned to scale from high-end and mid-range vehicles to broader adoption across OEMs, similar to the historical adoption of safety features like airbags.

• Anticipated that these wins will drive further adoption of A-PHY technology and position Valens to capture additional market share.