[Chipformation] AI Semiconductor Company Ambarella Joins Hands with Samsung

Ambarella, a US-based artificial intelligence (AI) semiconductor design company (fabless), will announce its fiscal fourth-quarter results (November 2022 to January 2023) on the 28th (local time). At the time of its third-quarter earnings announcement, Ambarella forecasted fourth-quarter revenue of $81 million to $85 million and a non-GAAP gross margin of 63% to 64%. It is expected to record quarterly results similar to the third quarter’s revenue of $83.19 million and gross margin of 63.5%.

Although the results for the third and fourth quarters of the fiscal year are expected to be similar, the stock price has changed dramatically. The stock price, which was $54.73 at the close on October 31 last year, has nearly doubled to $93.34 (as of February 23). The emergence of ChatGPT has increased interest in AI semiconductors, and Ambarella’s recent achievements in automotive semiconductor design competitiveness are being reflected in the stock price in advance.

Ambarella designs semiconductor chipsets used in AI systems. It designs semiconductor chips needed for security cameras, advanced driver-assistance systems (ADAS), and automotive video recorders. When it was founded in 2004, it focused on developing high-definition video chips targeting the broadcasting market. These were mainly used in GoPro, Dropcam, and DJI drones. However, since 2015, it has expanded its technology to the automotive electronics business and is now achieving results in developing ADAS and autonomous driving chips capable of low power consumption and high resolution.

Ambarella is also a customer of Samsung Electronics, which is seeking high value-added opportunities in AI semiconductors. This month, Samsung Electronics announced that it will produce Ambarella’s autonomous driving vehicle semiconductors using advanced 5-nanometer foundry processes. The semiconductors Samsung Electronics will produce this time are Ambarella’s latest SoC (system on chip) 'CV3-AD685' installed in ADAS. The next-generation AI engine embedded in the CV3-AD685 acts as the brain of autonomous vehicles by independently judging and controlling driving situations input through cameras.

Ambarella’s CV3-AD685 has improved AI performance more than 20 times compared to its predecessor, thanks to Samsung Electronics’ advanced 5-nanometer process and other technologies. Through cooperation with Samsung Electronics, it has become possible to achieve the high-level AI performance and power efficiency required for implementing ADAS and autonomous driving from 'Level 2+' to 'Level 4.'

Ambarella’s technological prowess also shone at CES 2023, the world’s largest electronics and IT exhibition held in January this year. German global automotive parts company Continental announced a strategic partnership with Ambarella. Continental plans to introduce a solution that integrates Ambarella’s latest SoC product lineup into ADAS. At CES, Continental stated that Ambarella’s network computing power consumption is very low and its performance is about 40 times better than existing chips, which can improve the driving range of electric vehicles by 5 to 10 km.