Targeting the 3-megapixel mainstream market: Valens (VLN.US) partners with onsemi to simplify automotive camera architecture

Valens Semiconductor (VLN.US) shares jumped about 8% in premarket trading on Monday after the company announced a partnership with onsemi (ON.US) to develop a cost-optimized integrated sensor based on the MIPI A-PHY standard, targeting high-volume 3-megapixel automotive camera applications. Under the agreement, Valens and onsemi will jointly develop an A-PHY-based solution a technology used to transmit high-speed data from in-vehicle cameras and sensors that can be integrated directly into onsemi's image sensors. This can reduce the number of discrete components required, making it easier for automakers and their key Tier-1 suppliers to adopt the technology. Targeting mainstream automotive cameras The collaboration aims to simplify automotive camera design. onsemi said integrating the technology can create a leaner camera architecture by reducing component count while supporting industry-standard connectivity interfaces. This matters because Valens' new product is not aimed solely at high-end camera systems. The company said most automotive image sensors today target the 1-megapixel to 3-megapixel range. As such, a 3-megapixel solution covers both an established high-volume market and addresses automakers upgrading to higher-resolution cameras. Valens CEO Yoram Salinger called the agreement a "major milestone" for the company and the MIPI A-PHY ecosystem, saying the cost-optimized product can extend A-PHY into a broader range of applications. He also emphasized that onsemi is itself an A-PHY chip supplier, and its participation gives automakers more supplier choices for this industry standard. Valens' automotive business heading toward 2027 ramp The latest collaboration is part of Valens' broader efforts to drive commercialization around MIPI A-PHY, the automotive industry's first standardized solution for high-speed sensor connectivity. Valens said it is the first company to bring compliant chipsets to market and has secured design wins with multiple automakers. In its fiscal 2026 second-quarter earnings report, Valens said all four of its automotive design wins are progressing toward mass production, with revenue expected to begin ramping in 2027. Automotive revenue for the quarter reached $5 million, up from $4.3 million a year earlier but down from $5.9 million in the prior quarter. Total second-quarter revenue rose to $18.1 million from $17.1 million a year earlier, exceeding the company's prior guidance. Valens subsequently raised its full-year 2026 revenue outlook to a range of $78 million to $81 million.