Menlo Microsystems Inc. is teaming up with Nvidia to speed up the testing of the booming company’s AI chips, in a high-profile move for the Irvine-based firm.
Nvidia, the world’s most valuable publicly listed company with a market cap over $4.5 trillion, is the central player in the artificial intelligence world (Nasdaq: NVDA).
Seeking to accelerate its processes to meet the seemingly insatiable demand for its chips, Nvidia is turning to Menlo Micro, a maker of cutting-edge miniature electronic switches, for its testing and validation devices.
“We’re the only device that can do both with the same device,” Menlo Micro CEO Russ Garcia told the Business Journal on Nov. 21.
He cites the critical importance of confirming the performance of Nvidia’s semiconductors before they are installed in data centers and elsewhere.
Vigorous Testing for Nvidia
Nvidia has sold millions of artificial intelligence chips and the number is surging each day. Every Nvidia AI chip must undergo rigorous testing on a specialized circuit board to ensure it meets performance standards before reaching customers.
Menlo Micro’s metal-based microswitch units boost the performance of the circuit boards used to validate Nvidia’s products.
Engineers at both companies reported in a newly published research paper that their combined solution cuts testing time by 30% to 90%, depending on the specific test for the product known as a graphics processing unit.
“Our collaboration with Nvidia demonstrates how advanced switching can unlock new test methodologies,” says Menlo Micro SVP Chris Giovanniello.
$238M Funding Raised
Menlo Micro, a 2016 spinoff from General Electric, had raised $238 million in financing as of January. Menlo Micro’s backers include Apple Inc. iPhone co-creator Tony Fadell.
Nvidia isn’t the only company using Menlo Micro devices for chip testing and validation of high-performance computer devices.
“We’re now designed into 14 of the top 24 semiconductor companies for this similar purpose,” Garcia said. “And we’re in production with five of them already.”
The firm’s tiny switches are designed for nearly everything from smartphones to defense systems and medical equipment. Menlo Micro is already developing a high-current advanced circuit breaker for the U.S. Navy.
Menlo’s Accelerating Revenue
Garcia said in January that revenue boomed threefold to more than $10 million in 2024, and he was expecting sales this year to double again to more than $20 million.
“Over the last two years we’ve gone from low single digits millions to we’re well into double digits millions,” he said without providing a specific number for this year.
He declined to provide numbers or say how much the arrangement with Nvidia will provide.
The company uses subcontractors at its manufacturing facilities in Indiana and Sweden, while the units are assembled in Taiwan, according to Garcia. Menlo Micro also has a factory in upstate New York.
The company has about 50 to 55 employees at the Irvine headquarters, with 75 employees companywide.
The Irvine office handles chip design, marketing sales and logistics.
Aerospace, Defense Uses
In addition to AI data, Garcia cites aerospace and defense as a “new growth area” for the company. The defense business is “centered mostly around drones, guided munitions”.
Power is the company largest area, Garcia says. That covers uses in energy and electricity in industries, buildings, e-mobility and electrical infrastructure.
Menlo Micro Hits 1 Million Switch Mark
Menlo Microsystems, makers of tiny electronic switches, said Nov. 20 it had shipped its one-millionth unit known as the “Ideal Switch.”
The milestone reflects the growing demand for the Ideal Switch, which the nine-year-old company says offers a disruptive approach to outdated traditional switching technology.
Unlike traditional switching technologies, the Ideal Switch delivers high performance without compromising size, weight, efficiency and reliability.
“This capability allows OEMs (original equipment manufacturers) to design smaller, lighter, faster, and more energy-efficient systems that can be readily scaled, offering new solutions to tackle the limitations of switching technologies,” Menlo Micro said in a news release.
Menlo Microsystems Has Three Main Growth Areas
Menlo Microsystems says the key high-growth markets adopting its Ideal Switch technology include:
Test & Measurement: Menlo already supports 14 of the top 20 semiconductor manufacturers, including those developing AI GPU/XPU systems.
Aerospace & Defense: Menlo has key product designs moving to production this year for guided missile systems, drone guidance systems and a major contract to develop advanced circuit breakers for the U.S. Navy.
Power Switching: Menlo is engaged in large-scale opportunities with significant growth potential across data centers, AI and robotic factories, power distribution and industrial control markets.
