Valens Semiconductor Ltd. (NYSE:VLN) Q4 2023 Earnings Call Transcript

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Gideon Ben-Zvi: Well, of course, we cannot elaborate about the detail about technical detail of the chip. I can say one thing. The essence of Valens is a company that replaced the full analog technology with carving out part of the analog and putting the DSP inside. And this puts us in a situation that unlike analog company, we benefit from the more advanced processes because, as you know, the digital enjoys from an advanced processes, while the analog suffers from advanced packages because it’s far more expensive. And this — the deal with Intel will enable us to — without going to the specs of the chip, that each chip on this process will give us far higher performance, smaller and more efficient power, a power-efficient chip. So that’s the advantage of the IFS. I’m not sure if this is what you asked. MIPI A-PHY chipset — did you ask particularly about the MIPI A-PHY chipset or about this [indiscernible]?

Suji Desilva: Just, yes, what Intel noticed about your chip architecture, obviously, to the auto chip, right?

Gideon Ben-Zvi: Well, the Senior Vice President of Intel, Stu Pann, said that their goal is to identify transformative technologies. And this is what put Intel to do it. And I think this is what put us to do this deal. It’ll accelerated innovation, and it’ll really unlock opportunities, new opportunities that automotive don’t have today. There are a lot of barriers today in the automotive industry regarding bandwidth as we discussed before with AI, but also power. Power, power and power, the — speaking about the cars that have hundreds of watts — actually a range of kilowatts in order to operate a different system. And the Intel — the deal with Intel addresses this particular problem as well inside of the performance — it’s inside of the performance of [indiscernible] for sure, but also the power.

MIPI A-PHY chipset is the obvious fit for the next-generation technology because the next-generation technology, as I mentioned before, we speak about AI, it’s more resolution, more bandwidth — more resolution and depths of the color, more bandwidth in order to capture and avoid more accident cases. And the Intel did enable the resolution and the speed that — and the power to accomplish those needs, and this is why we think it’s a transition in the automotive — for automotive.

Suji Desilva: Okay. Thank you, Gideon. Very helpful. Thanks, guys.

Operator: [Operator Instructions] There are no further questions at this time. Mr. Ben-Zvi, would you like to make your concluding statement?

Gideon Ben-Zvi: Yes, please. Thank you. I would like to thank you all for joining us today for our Q4 and the full year 2023 call and for your continued support and interest in Valens Semiconductor.

Operator: Thank you. This concludes the Valens Semiconductor fourth quarter and final results of 2023 conference call. Thank you for your participation. You may go ahead and disconnect.

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