SAN FRANCISCO/MUNICH (Reuters) – U.S. semiconductor company Qualcomm announced on Tuesday that it will be supplying chips to luxury automakers Mercedes and BMW, in order to power their in-car infotainment systems.
Although Qualcomm is primarily known as the leading supplier of chips for smartphones, the company has been expanding its presence in the automotive industry. It works with automakers to power various functions in vehicles, including infotainment systems and advanced driver assistance systems.
In its most recent financial quarter, Qualcomm saw a 13% growth in its automotive revenue, despite a slump in the smartphone market. The company’s statement indicated that it will be providing chips to BMW to support voice commands inside the car, as well as supplying chips for the upcoming versions of Mercedes E class models, which will be launched in the U.S. in 2024.
Qualcomm’s Chief Executive Cristiano Amon stated during an interview at the Munich auto show that the company expects to earn $4 billion in revenue from the automotive sector by 2026. By the end of the decade, they project this number to increase to $9 billion.
The U.S. chip designer had previously announced that their “pipeline” in the automotive business amounted to $30 billion. This figure includes the sales of their Snapdragon Digital Chassis product, which is utilized by car makers and their suppliers for assisted and autonomous driving technology, as well as in-car infotainment and cloud connectivity.
Amon emphasized Qualcomm’s focus on finding new areas for growth, with the automotive industry being one of them. When asked about the upcoming IPO of Arm Holdings Ltd, a chip designer owned by SoftBank Group Corp, Amon stated that Qualcomm is not directly participating in the IPO, but they believe that Arm plays a crucial role in the ecosystem and are in favor of seeing an independent Arm.
The news article was reported by Stephen Nellis in San Francisco, Victoria Waldersee, and Christina Amann in Munich. The article was edited by Rashmi Aich and Kim Coghill.
Credit: The Star : Tech Feed
