Valens Semiconductor (NYSE: VLN) announced that it has secured its fourth global MIPI A‑PHY design win, partnering with a premium automotive OEM that serves the Chinese market. The agreement will integrate Valens’ VA7000 chipset into the OEM’s advanced driver‑assist systems, with production slated to begin in 2027.
The win adds a new revenue stream for Valens and strengthens its position as a leading silicon supplier for MIPI A‑PHY connectivity. It expands the company’s footprint in China’s rapidly growing automotive market, where demand for high‑bandwidth, low‑latency sensor links is accelerating as OEMs upgrade ADAS and autonomous platforms.
Valens’ recent financials provide context for the significance of the win. In Q3 2025 the company generated $17.3 million in revenue, up from $16.7 million in Q4 2024, and it is guiding full‑year 2025 revenue to $69.4–$70.1 million. Gross margin remains strong at 62.5 %, but operating and net margins are negative, reflecting investment in growth and the current competitive environment. The company’s liquidity is robust, with a current ratio of 5.68 and a debt‑to‑equity ratio of 0.08.
The design win falls within Valens’ Cross‑Industry Business (CIB) segment, which accounts for roughly 75 % of total revenue. The automotive portion of CIB is a key growth driver, and the MIPI A‑PHY standard is gaining traction across multiple silicon vendors. Valens differentiates itself with a DSP‑managed PHY that delivers EMI resilience and cost advantages through unshielded cabling, positioning it ahead of competitors such as Texas Instruments and Analog Devices in the automotive connectivity space.
Management highlighted the strategic importance of the win. Adar Segal, Head of Automotive Business, said the partnership “reinforces Valens’ role as the go‑to silicon supplier for A‑PHY, enabling OEMs and Tier 1s to deploy the technology across vehicle platforms.” CEO Gideon Ben‑Zvi noted that 2025 is expected to be a turnaround year after a challenging 2024, underscoring confidence in the company’s long‑term trajectory.
The win demonstrates Valens’ continued traction in automotive connectivity, but the company remains focused on addressing margin compression and sustaining revenue growth amid a competitive landscape that includes established players and evolving standards.
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