Qualcomm Set to Upgrade AR1 Chip to 3nm, Driving AR and XR Innovations

Asianfin--Qualcomm's AR1 chip, introduced last year, is set for an update next year, according to sources from the industry chain on Tuesday.

The new version, AR1 Gen 2, will feature a 3nm process, based on the 4nm technology. In addition to its efforts in AR (Augmented Reality), Qualcomm is making substantial investments in the entire XR (Extended Reality) ecosystem.

The company is developing a new AI architecture, in a bid to push for deeper integration between smartphones and smart glasses. By the end of this year, Qualcomm and Google are expected to jointly release a new XR-focused operating system.

Unlike the annual iteration cycle seen in mobile chips, progress in AR and XR chipsets have been significantly slower. Before 2022, only a few manufacturers had entered the market, often repurposing lower-performing mobile chipsets for VR and AR devices.

“VR chipsets were simply using the leftovers from mobile phone technology,” a VR enthusiast told Asianfin.

However, Apple's entry into the market has fueled competition, particularly in the AR sector. According to IDC data, global AR device shipments surged 63.5% in 2023 to 500,000 units. This growth is expected to accelerate in 2024, with shipments projected to rise by 85.6% to 845,000 units.

Qualcomm’s XR chipset lineup was initially formed in September 2022 with the launch of the XR2 Gen 2 and AR1 Gen1 chips. The XR2 Gen 2 and AR2 Gen1 were positioned as flagship products, designed for advanced applications, while the XR2 Gen1, XR2+ Gen1, and AR1 Gen1 targeted the high-end market, delivering an enhanced experience for mainstream users.

The AR1 Gen1 chip, specifically designed for lightweight smart glasses, supports advanced AI features tailored to personal assistant functionalities. Some products, such as the Meta and Ray-Ban smart glasses, have already integrated this chip.

However, the pace of chip iteration in this market remains slower than in the mobile sector, a reflection of the market characteristics and manufacturers’ strategic investments. Qualcomm is increasing its focus on this area, betting on AR and XR as the next major computing platforms.

An industry insider likened the situation to the early days of electric vehicles, saying “Everyone believes in its potential, but no one has yet achieved the equivalent of a 400-kilometer battery range, so investment levels fluctuate.”

A recent report from BOC International noted that challenges related to AR glasses mass production and insufficient consumer demand are gradually being addressed.

The report predicts that the AR glasses market could record one billion units of shipment, positioning the technology as the next-generation computing terminal. In addition to Qualcomm, MediaTek, a Taiwan-based semiconductor company and the fourth largest fabless semiconductor company in the world, is reportedly advancing its research and development in AR chip technology.

The upcoming Meta Connect 2024 is expected to unveil new AR glasses, incorporating silicon carbide waveguide technology. This development may mark a pivotal moment for the AR industry.