Qualcomm Revs Up the Auto Industry with a New Game-Changing Role
Qualcomm Inc, a chip designer based in the United States, said on Thursday that its automotive business “pipeline” had grown to $30 billion, an increase of more than $10 billion since the company’s third-quarter results were disclosed in late July.
Qualcomm claimed at its Automotive Investor Day that the increase in future business was due to its Snapdragon Digital Chassis product, which is utilised by vehicle manufacturers and their suppliers. The Snapdragon Digital Chassis is capable of assisting and autonomous driving, as well as in-car entertainment and online connection.
The number of chips used by automakers is rising due to electric vehicles and expanding autonomous capabilities in automobiles, and the automotive business has been a crucial development area for chipmakers.
“When you think about a per car basis, a lower tier car, we have an opportunity of approximately $200 stretching all the way to $3,000 at the high tier,” said Qualcomm CFO Akash Palkhiwala.
“Going forward the mix will continue to shift towards the high end so the opportunity will keep expanding.”
Qualcomm said that its target automotive industry might reach $100 billion by 2030. It expects its automotive industry revenue to earn about $1.3 billion in the fiscal year 2022, up from $975 million the previous year. It expects that figure to exceed $4 billion by the fiscal year 2026 and $9 billion by the fiscal year 2031.
Qualcomm also announced an extended collaboration with Mercedes-Benz Group AG (MBGn.DE), which will use the Snapdragon Cockpit for its in-car entertainment system beginning in 2023.
Qualcomm also has a large number of automotive clients in China. Asked about the effect of larger U.S. export controls, CEO Cristiano Amon stated “strong win-win collaborations between the U.S. firms and the China enterprises will always be a force of stability”.
“But we’ll see what the future holds,” he continued.
Nvidia Corp announced drive thor, a new vehicle central computer designed to deliver autonomous and assisted driving as well as in-car digital entertainment and services, earlier this week.