Ouster Acquires Sense Photonics To Create Next Generation VCSEL Based LiDAR

Ouster announced today that it will acquire Sense Photonics, which is based in San Francisco, California (with locations in North Carolina and the United Kingdom). As part of the acquisition, around 80 Sense employees will join Ouster, with Sense CEO, Shauna McIntyre heading up the automotive LiDAR effort (Ouster Automotive). Ouster (OUST) went public via a SPAC merger earlier this year.

The synergies in terms of technical approach are strong - both companies focus on LiDARs that deploy Vertical Cavity Surface Emitting Lasers (VCSELs) and Single Photon Avalanche Photodiodes (SPADs) at the 8XX-9XX nm wavelengths (Ouster at 8XX nm and Sense at 9XX nm). This is a similar architecture as the one deployed in the world facing camera of the Apple I-Phone 12. The high volume consumer application of this architecture argues for significant supply chain maturity and lower costs.

While Ouster has several mechanically rotating LiDARs (step and flash) available as products serving diverse markets (across a base of 400 customers) today, Sense has focused on the automotive space using a flash LiDAR approach in which arrays of VCSELs and SPADs are used to create 3D LiDAR images that are critical for ADAS and autonomous vehicles (AVs). Figure 2 shows the components of the LiDAR system, the key being the Sense Illuminator, which uses a patented micro-transfer printing process to transfer VCSEL elements from a rigid GaAs wafer to a flexible substrate, enabling graceful integration into car platforms and flash LiDAR operation without moving parts. SPAD arrays are used for detection.

The need for consolidation in the LiDAR ecosystem is clear, as discussed in an earlier article. There are over 75 independent LiDAR companies today, and the ADAS and AV markets are simply not large enough to justify the enormous investments and valuations of these companies. High volume markets do exist in the consumer space (smart phones and soon, smart glasses), although the OEMs in this case build the LiDAR themselves by acquiring the VCSEL and SPAD components externally. Other opportunities like trucking, agriculture, mining, smart cities and smart infrastructure are emerging, and many of the LiDAR companies are pivoting to these as they await a design into a major automotive platform.

The combination of Ouster’s established product and contract manufacturing capabilities with Sense Photonics’ flash LiDAR IP and automotive customer traction will enable the combined company to penetrate the automotive market more effectively. It will accelerate Ouster's solid-state roadmap by more than 12 months, and enable productization progress on a strategic development agreement awarded by a major global automotive OEM to Sense earlier this year. Additionally, there are four other major automotive opportunities in the pipeline.

According to Angus Pacala, CEO of Ouster, "Sense's breakthrough 200-meter digital solid-state technology has generated serious interest from global automotive OEMs and is in line with our digital solid-state multi-sensor strategy. This provides tremendous synergy in our development efforts and brings in a world class team of people and IP that will allow us to lead the industry's transformation from analog to digital lidar. We've always said there would be other digital players in the lidar industry — it's important that Ouster has moved aggressively to consolidate IP in this space. We believe solid-state digital lidar is the future, and what's needed to win in automotive. Having the expanded patent coverage through Sense will help us defend that win."

Exciting and busy times ahead!