AX-E0, the innovative microcontroller for IoT: CEO of Arox, a Krein partner, shares its story on Stories of Success by Il Sole 24 Ore

An Italian-made chip designed to cut Internet of Things (IoT) energy consumption by up to 10 times, without compromising computational performance. That’s the challenge embraced by Arox, a semiconductor company founded and led by Davide Toschi, who shared the genesis, the project backstory and evolution of the project in the "Storie di Successo" column, curated by Alessia Tripodi for Il Sole 24 Ore and dedicated to the journeys of digital entrepreneurs.

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AX-E0: A solution born from a real limitation

"We didn’t just write a good algorithm. We solved the problem at its core, by working directly on the silicon," Toschi explains in the opening of the interview.

The spark for developing the chip came during his experience with Endcode, Toschi’s previous company. While developing an indoor localization system, a critical limitation emerged: “Despite all software optimizations, the battery lasted only 6–8 months. It was clear the problem wasn’t the code, but the hardware.” 

That’s when the turning point came: “We decided to go straight to silicon, and that’s how the development of AX-E0 began.”

The AX-E0 architecture is based on a proprietary methodology that allows the circuit to activate only in the areas strictly necessary for each operation.

This tailored approach drastically reduces energy consumption, making the chip ideal for IoT devices where battery life is a constraint. “Our design is like a tailored suit— cut precisely for maximum efficiency,” adds the Arox CEO, closing the introduction to the interview.

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AX-E0: Turning limitations into low-power breakthroughs

The AX-E0 chip is designed and tested in Italy, making it a true “Made in Italy” product for these phases of the value chain.

“In chip development, there are typically three stages: design, silicon placement, and manufacturing. Arox has internalized the first two, maintaining full control over chip production, while manufacturing is outsourced, primarily to Taiwan.”

The chip has a wide range of applications, but in all of them, long-lasting operation without frequent charging is key. “Anyone looking to build an ultra-low-power IoT system can find a solution in AX-E0.”

AX-E0 will be priced higher than traditional chips, but Arox is betting on long-term sustainability: “An innovation that consumes 10 times less naturally costs more. But the initial investment in a more expensive chip pays off over time through reduced power consumption,” Toschi explains to Alessia Tripodi.

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Arox’s roadmap

Arox’s financial journey began with bootstrapping through Endcode’s software consulting activity, which supported initial salaries and early R&D.

After demonstrating strong results with the microcontroller’s core, Arox began receiving acquisition offers from major tech companies. Toschi turned them down, wanting to continue developing what he considered a once-in-a-lifetime project.

Later, Arox secured funding from a 100% Italian investment group, which provided not only capital but also a commercial network. “The most important thing? They respected our cap table and our timing, a key factor for the product time-to-market,” Toschi notes.

The challenges in the semiconductor industry are significant. First, costs are extremely high, incomparable to those of software development. “These costs include very expensive development tools, highly specialized personnel, and chip fabrication, another major expense,” says Toschi.

Another critical hurdle is the zero margin for error in hardware design: “You can’t get a chip design wrong. It’s too costly, both financially and reputationally. And a hardware error can’t be patched.”

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Investment, growth, and the future vision of Arox

Arox’s future roadmap includes the development of an entire family of chips. Next up: integration of a wireless communication interface such as Bluetooth (BL).

A strategic focus will be applying Arox’s design methodology to AI-on-chip hardware: “Our goal is to achieve not just 10x reductions, but even more, bringing our design style to AI at the edge, allowing resource-constrained devices to run AI algorithms much more efficiently.”

Due to the complexity of the next hardware generation, the team has grown from 5 to 15 people, with plans to reach 30 by year’s end to accelerate development.

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Arox’s brand: Between tech, art, and luxury

With Krein's support, Arox refined its digital (re)positioning across its website and social media. Krein also developed all brand materials, helping define a cohesive and distinctive visual identity.

The social communication strategy is split across LinkedIn and Instagram. LinkedIn is leveraged to highlight the technical side of the company and its technology, while Instagram will be the channel to convey the artistic, almost couture-like nature of the design.

It’s a fusion of art and engineering that Davide Toschi strongly believes in: “The chip is a technological object, but also an aesthetic one,” he tells Tripodi in the interview’s closing remarks.

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Davide Toschi’s advice to young tech founders

Davide Toschi’s strategic advice for aspiring entrepreneurs — especially those with a technical background — is to focus first on the tech itself: “I believe the foundation of any project must be the technological realization of something truly beyond the state of the art. Once that’s achieved, everything else follows naturally.”

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Go over Davide’s interview with Alessia Tripodi for 'Stories of Success' by Il Sole 24 Ore: https://stream24.ilsole24ore.com/video/italia/arox-e-chip-made-italy-che-riduce-10-volte-consumi-nell-iot/AHeMpNr

Visit the Arox website, crafted and designed by the Krein team.