Valens Semiconductor announced that three original equipment manufacturers will launch endoscopes powered by its VA7000 chipset, including a laparoscope, a 3‑D imaging solution for robotic surgeries, and a single‑use colonoscope that delivers 4K video resolution. The move marks the company’s first foray into the medical imaging market and signals a new revenue stream beyond its established automotive, Pro AV, and machine‑vision businesses.
The VA7000 is the first chipset to meet the MIPI A‑PHY standard, a specification that enables ultra‑high‑speed data transfer in compact form factors. It also incorporates built‑in electrosurgical noise cancellation, a feature that protects image quality in the electromagnetic environment of an operating room. Multi‑gigabit connectivity over ultra‑thin coax and UTP cables further simplifies installation and reduces system cost for endoscopic equipment.
Valens’ Q2 2025 financials provide context for the launch. Revenue rose to $17.1 million, a 63.5% gross margin on a GAAP basis, and an adjusted EBITDA loss of $4.0 million. The company’s CFO, Guy Nathanzon, noted that tariff uncertainty prompted a downward revision of full‑year 2025 guidance, but the firm remains confident in its long‑term strategy. The new medical‑imaging venture is expected to offset the modest profitability in the core segments and contribute to future revenue growth.
The medical‑imaging market is projected to grow from $63.4 billion in 2024 to $82.6 billion by 2029, driven by an aging population and the increasing prevalence of minimally invasive procedures. Single‑use endoscopes, in particular, are gaining traction as the FDA encourages devices that reduce healthcare‑associated infections. Valens’ VA7000, with its noise‑cancellation and high‑speed data transfer, is well‑positioned to meet these regulatory and performance demands, giving the company a competitive edge over traditional imaging solutions.
Management emphasized the strategic importance of the launch. Gili Friedman, Head of Cross‑Industry Business, said the market is “thriving” and that leading companies are proactively approaching Valens, confirming product‑market fit. CEO Gideon Ben‑Zvi highlighted strong demand in the Pro AV and industrial machine‑vision segments, while CFO Nathanzon reiterated that tariff‑related headwinds are a short‑term concern but do not alter the company’s confidence in its diversified portfolio.
Valens will report its Q3 2025 earnings on November 12, 2025. Analysts expect revenue of $15.4 million and an EPS of –$0.07, a slight miss relative to consensus. The company’s guidance reflects a cautious outlook amid tariff uncertainty, but the new medical‑imaging partnership signals a strategic pivot toward higher‑margin, high‑growth verticals.
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