Operator: And our next question comes from the line of Chris McNally with Evercore ISI. Please proceed with your question.
Chris McNally: Thanks so much team. Quick one on just the numbers and one on orders, so just on the timing for gross profit progression in 2023, it looks like you’re going to be down something like 400 basis points. And I think you’ve explained that that’s the STM increase on the chip side. Could you just help us do, does that pass-through happen as early as Q1, Q2, obviously doesn’t matter for gross profit dollars, but just for the gross profit margin walk, could you just help us on the timing?
Anat Heller: Yes so the timing is from January 1. We are testing already over this cost that we – and those increase at the beginning of the year, we’re testing it over to our customers and without additional margin, but this is the reason for a slight decrease in our margin for EyeQ.
Amnon Shashua: Yes and then the second thing that we mentioned in the prepared remarks was SuperVision becoming a bigger mix of our revenue as a kind of a mathematical effect on the percentage margin, gross profit per unit is much higher, but gross margin is lower, but that will be a bigger effect in the second half because the volume of SuperVision is significantly higher in the second half.
Chris McNally: Great. And then on the – did the Chauffeur win, obviously congrats is it to the – scale of OEM that a lot of us think that – it’s a huge deal. But can you talk a little bit about just the timing of some of these – SuperVision walked into Chauffeur. I mean, if you’re talking about launches in SuperVision in ’25, what’s the typical sort of conversation around that transitioning to Chauffeur is it ’27, is it ’28? And then any idea of – we talk, we starting with level three and then working up to level four, it obviously such an important sort of part of the – later half of the decade just curious when these programs may launch?
Amnon Shashua: Yes, so – now with taxonomy, there is no difference between level three and level four, it’s been eyes-off or eyes-on system that this is what I spoke about us at the CES. So on eyes-off system with OEMs except ZEEKER that starts in 2025, the rest of the OEMs are starting in 2026. So we have quite a nice traction, as I said three OEMs and the fourth one should be – should be closed second half of this year for eyes-off systems for 2026.
Dan Galves: Yes, because SuperVision – really serves as the baseline – the timing gap between the SuperVision launch and a Chauffeur launch doesn’t have to be a significant number of years.
Chris McNally: That’s great. And just to confirm, in the prepared remarks, you said that most of your SuperVision conversations you’re having discussion of this walk to Chauffeur?
Amnon Shashua: Yes, yes, it’s not most all every, every customer that bought and into with SuperVision. We have a meaningful indeed discussion about expanding to Chauffeur.
Chris McNally: Thanks so much.
Dan Galves: Thanks, Chris.
Operator: Our next question comes from the line of Antoine Chkaiban with New Street Research. Please proceed with your question.
Antoine Chkaiban: Hi thank you for taking my question. Maybe a quick one first, I was wondering where you stand on deploying the key mapping base features where the OTA update to declare users in China on what features that will unlock exactly what additional features we should expect in the upcoming update as well?
Amnon Shashua: So, in China with ZEEKR about three months ago we OTAed highway assist, recently we OTA to leading customer the full SuperVision limited to highways, this is including the REM maps as part of it. And we believe that in the next month or two months, we’ll be able to do the OTA for the entire fleet with full REM – with full REM capability of SuperVision for highways. And then throughout the 2023, together with ZEEKR as our map coverage we’ll increase – we will start unlocking additional road types like arterial and urban.
Antoine Chkaiban: Okay, thank you. And maybe as a follow-up – rather follow-ups so, I think one important differentiating factor that Mobileye has is that you offer an end-to-end solution, while your main competitor today offers really like a reference platform. Can you help us better understand how in practice, the integration work differs when you kick-off a development project versus when your main competitor doesn’t? I’m assuming that in the case of the other offering out there, there is still some significant development work that needs to get done by the OEMs themselves, but anything you can tell us on how things typically happen in practice would be very helpful?
Amnon Shashua: Mobileye – and the SuperVision is not – is offering an end-to-end system. So the ZEEKR as an end-to-end system, all the other SuperVision launches that I talked about the six OEMs and nine brands is still an end-to-end system. Vertical handle of an end-to-end system, I think, is crucial, because you’re talking about perception you’re talking about integrating with a map. The map is built together with the teams that are building the perception. So if you try to separate the map from perception to two different suppliers, you get into a sea of issues, either it will be over-engineered or be under-engineered cost-wise, it could be crazy. The fact that now the same team is integrating both the sensing both the perception and the way the map is being built and served is crucial.
Then you have driving policy. The driving policy is also integrated with the perception. But again, if you try to separate that into a supplier doing the driving policy and other supply doing the perception, you end up with an over-engineered system and in some places it will be under-engineered be too conservative and too slow. So I think in such a complex system an end-to-end where everything is done by one supplier has a lot of advantages and has also not only performance advantages, but also cost advantages. Everything under one house under one chip is – it offers incredible cost advantages. But we are not shy from cooperating in other ways. For example, there are OEMs that would like to take control of the driving policy, where Mobileye provides only the perception, we’re open to that.
This is why we offer the EyeQ Kit, which enables the OEM or a supplier to write code on to our chip on top of our software, whether it is fusion with other sensors, whether it’s driving policy, we don’t resist that. But having an end-to-end system can be much more efficient than we can get down to different suppliers.
Antoine Chkaiban: Very helpful.
Dan Galves: Thank you, Antoine. And so our next question please?
Operator: Our next question comes from the line of Vijay Rakesh with Mizuho. Please proceed with your question.
Vijay Rakesh: Yes hi, guys, great quarter and guide here. Just a quick question on €“ SuperVision just to go back to that in terms of the six OEMs outside Geely and ZEEKR, can you give us some idea of, as they ramp in the second half. And you talked about significantly higher SuperVision volume there. What kind of volumes are you looking at the OEMs outside of the two Geely and ZEEKR for the other OEMs?
Anat Heller: Yes, I mean.
