Hello everyone and good morning. Welcome to Needham's 27th Annual Growth Conference. My name is Neil Young, and I work on the Semiconductor Research Team here at Needham. It is my pleasure to introduce Arbe Robotics. Arbe Robotics develops radar and operating systems for drones, automotive, and robots. It provides 4D imaging radar solutions for autonomous vehicles. Joining me from the company is the CFO. After introducing herself, she will take us through a brief presentation. Following the presentation, there will be a short Q&A session. Thank you for joining us. Please take it away.
Hi, good morning, Neil, and good morning, everyone. My name is Karine Pinto-Flomenboim, and I'm with Arbe for the past three years or so, since I became public. I want to talk today about Arbe, so there's the short disclaimer, so Arbe is a semiconductor company developing the only solution for truly safe driving level two plus autonomy. We are a nine-year-old company. We're currently dual-listed in the Israeli Stock Exchange, Tel Aviv Stock Exchange, and in the Nasdaq. We have global offices in Israel, Germany, China, and the U.S. We have 150 team members, most of which are R&D, 75%. Recently, we have secured a strong balance sheet, which we recently secured in two capital raises, $48 million, one in November and the last one just last week in January, with $48 million together with $30 million of convertible debt.
Our chipset manufacturer is GlobalFoundries, a U.S.-based company, which manufactures in Dresden, Germany, then assembles in Singapore, Korea, and tests back in the U.S., tests the chips. We are in cooperation. We've been chosen to be the next-generation chipset provider for the radars of Magna in the western geography. HiRain and Weifu are our Tier 1s in the Chinese geography. Sensrad is our Tier 1 partner for the non-automotive industry. We work together, powered by NVIDIA in the Western and Horizon Robotics. We are compatible to work with them, and we have recently announced our collaboration with NVIDIA as well. We have been selected and announced in Q2 2024 by a top 10 OEM, and we are in the final selection processes with 10 out of 15 of OEM globally. We have 15 patents and a strong pipeline. We have been chosen by industry leaders.
As I mentioned, one of the top 10 OEMs worldwide chose us for serial production. A large Japanese automotive client is using our radar for a massive ADAS data collection initiative. Also, a Chinese car manufacturer selected HiRain, which HiRain is our Chinese Tier 1, powered by our chipset for production in late 2025, based on a fusion with camera. Port of Rizhao chose Arbe HiRain radars powered by Arbe chipsets. There's also a European truck manufacturer collaborating to integrate our chipset into next-generation sensor suite, and of course, as I mentioned, yet more to come, so discussing a little bit about the radar and the crucial role in this technology, and we believe that actually for truly safe Level 2+ driving, it requires a radar together with a camera in order to solve the safe driving problem.
The radars in the market today, as we address them, the legacy radars are not detailed enough to support ADAS and perception, and we have developed a chipset to support the next-generation radar, which has a long detection range, superior performance in various conditions, any weather and lighting condition. It's robust, reliable, can support safety application, and it, as I said, complements camera. It's redundant and works together with it. The safety differentiation of a radar, so first of all, is actually the ability to see the things that other radars in the market currently cannot see. If we start from obstacle detection in long- range, we have a very long- range, including lost cargo, elevated objects, road construction, et cetera. Separation, we see trucks, vehicles, motorcycles, pedestrians, and we're able to separate them from each other. All kinds of urban detections, again, pedestrians, speed bumps, manholes.
We also identify slow and stationary vulnerable road users, and this is actually required in 2029 by NHTSA regulation. We work in any weather, any lighting condition, if it's dark, if it's rain, fog, snow, or blinding as well, blinding conditions. The second safety differentiation is actually we go a long way, so we're Level 2, Level 2+ compatible, but actually this radar can hold the automotive level up until Level 5, and it's an independent source of free space mapping. The third safety differentiation is the rich data and the fusion with camera, as we mentioned, so we have the high-quality and high-density data together enhancing safety and autonomous driving at the fusion level of a camera. Looking a little bit about the market, the radar market and the perception market ahead.
As we see it currently, we're at the hands-off stage, the Level 2, Level 2+, Level 3, which we see the 4D perception radar enters the market. This is the hands-off stage for traffic jam assist, navigation and autopilot, NOP, parking assist, emergency steering, auto lane change. For this stage, it's the entrance of perception radar required in the market. On average, we believe the research believes that one perception radar required per car, of course, together with the legacy radar and camera. In 2030, the research states that 4D radar should reach 15% of market share. This is already the eyes-off level of autonomy in highway requires autopilot, city pilot, and remote parking. For this level, of course, we're starting to talk about an average of at least three perception radar in a car, and of course, up to six.
As I mentioned, there's also a supportive regulation which, in order to support this next-generation safety requirements, also the NHTSA mandates the autonomous emergency braking, AEB, by September 2029 in all passenger car and light trucks. It requires to see pedestrian in the darkness. The only sensor that can see in the darkness is radar, and also the European NCAP, which requires by 2030 zero road fatalities, so tomorrow's safety standards demand actually perception radar capabilities, and that's what we saw before our eyes when developing and coming from this radar. There's actually a few sensors capable to address this problem. In his last speech, Dr. Jürgen Dickmann, the head of radar and radar perception in Mercedes-Benz, stated that ADAS radar requires an array of no fewer than 32 by 32 channels.
We believe, as he said, that the perception radar is the only technology capable of making hands-free driving truly risk-free. For his statement and the market statement, the only two radar solutions that meet the criteria above this 32 by 32 is Mobileye with a 32 by 48 channel array, and our company Arbe with a 48 by 48 channel array. A little bit about our product. This is the radar. It consists of seven chipsets. One is the processing unit, the bigger one that you see, two transmitters, RF chips, and four receiving chipset, RF. I think this slide represents what Dr. Dickmann said about the multi-channel ability to see. It demonstrates very well the pedestrian walking and the ability of the radar to detect. At the beginning, we just see a blur of point clouds.
But as you go to multi-channels, you can specifically see the objects and have a better understanding of the image. Taking you a little bit through video to emphasize what we see. So in the black screen, we see actually the point cloud. This is the radar and what he shows. And in the smaller box, we see the camera that the bounding box and the objects that the radar sees are implemented on the camera. Also, you can see the green area, which is the free space mapping. It's the drivable path that is actually driven by the ability of the radar to see. You see how it detects all of the objects. We can see here that the free space mapping is reducing between cars and does not allow the car to drive.
We also see the range of the objects, and we see that the radar can see it in higher distance. Okay, I just wanted to see that it starts now, and there's an accurate objects you can see from the left. This is the radar and to the right, which is the camera, the detection of crossing the bike classification. We see the pedestrian that is crossing the road. You can see it in the radar below. The colors actually detect the elevation. As we go ahead, we see the poles. You can see them very clearly with the radar detection, and there is a base localization that actually gives you a map of the road of the driving ahead. Thanks to the range, we can see here also the bridge, and of course, the bridge is not an obstacle.
It understands that you can drive just beneath it based on the free space mapping understanding, so this is a little bit to give you a sense of how the product is and how developed it is. A little bit about the competitive overview, so as we mentioned and as we see today, we have mainly Mobileye and us to solve the problem with the required channel array in the technology. Below that, there's the traditional NXP and TI as chip producers, but they support currently only 16 by 16 channels array, which do not support their required regulation. As we see it, we are the only 4D imaging radar perception radar that is applicable for level two plus, level three, and level four, and it's affordable, and our production is expected to be ready by Q1 2025. Just as a comparison, Mobileye's radar has a higher power consumption.
If we're talking about our radar at seven-chip cascade, Mobileye's radar is 17-chip cascade. Therefore, high power consumption, complex, and as I mentioned, sorry, 18-chip cascade. Touching base on business overview. So as we mentioned, we in the global automotive market, our Tier 1 partner is Magna. For China, it's HiRain and Weifu, and non-automotive or semi-automotive is Sensrad. And we have already been chosen by all of these Tier 1s. We are also hoping to announce in the first quarter another Tier 1 that has chosen us as well. And we are designing with them. The Tier 1 part is to design actually the radar and antenna, which is based on our chip supply. This is our leadership. So the two founders are Kobi Marenko, who is the CEO of the company. He has vast experience in over 20 years in startups and acquisitions.
He also founded Taptica that was purchased, acquired, and was very successful in the London Stock Exchange. His co-founder, Noam Arkind, he's the head behind the chipset and radar. He is our CTO. He has 10 years' experience in leading R&D teams. He has a PhD at an early age in applied mathematics and robotics from Weizmann Institute. Ram, our Chief Business Officer, who has worked many years in TI and in other semiconductor industry and knows the business environment very well, the chip semiconductor environment very well. In summary, currently we have B- sample and production with all of our Tier 1s. We assume early revenue will come, of course, from fast-growing automotive market in China. We also expect selections of OEM, as I mentioned, 10 out of 15 that we're currently engaged in to be in the coming quarters.
They will bring revenue for further years ahead, 2027 and 2028. And as we see it, radar is the only solution for safe and hands-free driving. Thank you.
Great. Thank you. It looks like we have some questions from the audience. So the first one here, it says, in the first slide, you talked about being in the final selection process with 10 of the top 15 OEMs globally. First, could you give a little more detail on that statement? And then second, when do you expect these OEMs will start announcing these awards?
So unfortunately, I cannot say a lot about those statements. When we will be able to, of course, we will be happy in the first one to announce it. This also requires the OEM part in approving this.
But we believe that we are already in the final stages of announcing, hopefully, something in this quarter, at least one to two OEMs. And the rest will be, again, not the entire 10, of course, but we assume, hopefully, at least other one or two in the coming year. Great.
The next one, I know you touched on China a little bit, but longer term, which geography do you view as the largest opportunity for Arbe?
So this is a good question, and it depends a lot. These days, we are a little bit with the Biden Administration and the chips that are being stopped to being produced to China. So we need to see those developments, although we do not believe that we are in a problem here. But as we see it, the China market is quicker to adopt this technology.
Of course, it's different between the Western and the Chinese geography. The Western ones, we are more engaged with the OEM, whereas with the Chinese geography, we are more engaged with the Tier 1s. Either we go direct to the OEM or it's with the Tier 1 , and we're not even aware of which OEMs, but there's really thousands of OEMs in that market. We believe that the closed revenue we have, I didn't mention that, but in our first slide, we mentioned there's $40 million of preliminary orders to HiRain and Weifu to the Chinese market. This is back to back. It was in order to secure capacity. That's why it's a preliminary order, back to back to requests from OEM.
We believe that we're still talking on low revenue numbers in 2025, but 2026 will have the ramp up, and it will come first from China, non-automotive, which is small scale, but high revenue. Again, for that, they will secure their selection already by this year in order to meet their, as I said, the regulatory criteria of NHTSA and NCAP. They will require to have this car, the ability of a radar on cars already driving year model 2030. This means radar shipments towards 2027, 2028.
Great. Thank you. The next question, I know you just talked about China, but how is the company planning on navigating the Chinese auto market, specifically when it comes to price competition with Chinese radar suppliers?
We are a semiconductor company.
We're a chip company. There's currently no Chinese chip company. So this is our advantage. There are radar companies which we work with. As I mentioned, HiRain is a radar company. Weifu is a radar company. They're basing our next generation. They are basing their next- generation radar on our chipset solution. So in that respect, we only see it as an advantage. And as I said, we're compatible to all of Chinese companies. We also work good with Horizon. Horizon is the equivalent of the NVIDIA, the main compute, which also is the main compute processor of the car. And this is the strong player in China, whereas in the Western world, it's NVIDIA. And we collaborate with them as well. And our chipset works good on these applications as well. And they comply, so.
Great. Thank you. I'm showing no further questions at this time.
Thank you very much.
Thank you all. Have a great day.