Espressif Systems (SSE: 688018.SH) has announced its acquisition of a majority stake in M5Stack. This strategic move marks a significant milestone for both companies in the Internet of Things (IoT) and embedded systems sectors, and aligns Espressif's and M5Stack’s common vision to democratize AIoT technology.

M5Stack is renowned for its innovative approach to hardware development and offers a modular, open-source platform that simplifies the creation of IoT and embedded system solutions, greatly enhancing deployment efficiency. Its diverse range of branded products essentially covers the entire IoT and embedded field. The M5Stack ecosystem is built around its flagship main control module, powered by Espressif’s all ESP32 series of chips, highlighting the deep technical synergy between the two companies.

The platform supports the rapid prototyping of smart devices: on the hardware side, it accommodates a variety of expansion modules, including environmental and motion sensors, camera modules, GPS modules, and more; on the software side, in addition to support for ESP-IDF and Arduino, it also provides users with the fully proprietary low-code development platform UIFlow and data service EZData. M5Stack also has a vibrant developer community, boasting extensive developer influence.

The collaboration between Espressif and M5Stack is poised to enhance Espressif’s ecosystem, leveraging M5Stack's extensive experience in industrial IoT applications to expand Espressif’s range of AIoT technology offering which includes chips, software, cloud middleware, tools and logistics support.

This acquisition also demonstrates that Espressif's commitment extends beyond its proprietary hardware, embracing third-party collaborations to foster a diverse ecosystem of IoT solutions.

Espressif achieved its highest performance level in an historical Q1-2024. In Q1-2024, the company achieved revenue of RMB 387.19 million, marking a 21.71% year-on-year increase. Net income amounted to RMB 53.92 million, showing a significant surge of 73.43% year-on-year. Click to view the key business indicators outlined in the company's first-quarter report.