Ambarella plans to mass produce 2nm chips by 2025, manufactured by Samsung Electronics
Ambarella, an edge AI semiconductor company, released its Q3 2024 financial results and subsequently held a earnings conference call to showcase its latest achievements and development plans to investors and the industry.
President and CEO Fermi Wang revealed a crucial piece of information during the meeting: the company has officially launched the 2nm project, and a team of professional engineers is fully committed to the related work. The first 2nm chip will be precisely positioned in the IoT field, and this strategic layout aims to fully tap into the potential demand for high-performance chips in the vast IoT market. And it is expected to be taped out in the fourth quarter of the 2025 calendar year, which has become a focus of attention in the industry and marks a solid step forward for Anba in the forefront of semiconductor technology.
Not only that, Anba also plans to continue its efforts in the 2nm process and launch a series of chip products. Through careful optimization of architecture design and dual deep improvements in process, we strive to fully meet the growing and complex workload demands of the AI era. This measure demonstrates Anba's technological ambition and market foresight in the field of edge AI semiconductors, which is expected to give it a greater advantage in the fierce market competition.
In terms of chip foundry cooperation, the first 2nm chip from edge AI semiconductor company Anba is expected to be manufactured by Samsung Electronics. Korean media The Elec reported in September this year that Samsung Electronics successfully won the bid for Anba's 2nm ADAS advanced driving assistance system chip order. The chip is expected to be taped out in 2025 and is scheduled for mass production in 2026. Considering the good foundation of successful cooperation between Anba and Samsung Electronics on the 5nm node in the past, and the industry practice that only a few small fabless design companies will use advanced technology from multiple wafer fabs at the same time, based on various factors, it is highly likely that Anba's 2nm IoT chip will also be manufactured by Samsung Electronics.
From a financial performance perspective, Ambarella achieved impressive results with a revenue of $82.7 million (currently approximately RMB 599 million) in the third quarter of fiscal year 2025. The year-on-year growth rate reached as high as 63%, and the month on month growth rate also reached 30%. This growth trend indicates that Anba has achieved significant results in market expansion and business operations. However, according to GAAP calculations, its gross profit margin was 60.6%, and it incurred a GAAP net loss of $24.1 million, which also reflects that Anba is facing certain pressure and challenges in terms of sustained technology research and development investment, market competition costs, etc., and needs to further optimize its financial structure and operational strategies in future development.
