On Tuesday, Qualcomm, the renowned U.S.-based semiconductor giant, unveiled strategic agreements to supply cutting-edge chips for in-car infotainment systems to esteemed automakers Mercedes and BMW. As the smartphone chip market experiences a downturn, Qualcomm is fervently diversifying its portfolio to ensure a strong foothold in the burgeoning automotive sector.
While Qualcomm may have fallen short of analyst expectations in the smartphone arena, the company has been actively forging collaborations with automakers to power a spectrum of vehicle functionalities. This extends beyond merely infotainment systems to encompass sophisticated driver assistance systems, marking a profound shift in its business strategy. In the most recent quarter, Qualcomm reported a noteworthy 13 percent surge in automotive revenue, underscoring the sector’s growing significance.
In an official statement, Qualcomm outlined its plans to supply BMW with chips engineered to elevate the voice command capabilities within their vehicles. Additionally, Qualcomm is set to equip the forthcoming iteration of Mercedes E-class models, slated for release in the United States in 2024, with its advanced chips.
Speaking at the Munich auto show, Cristiano Amon, Qualcomm’s Chief Executive, shared the company’s ambitious revenue projections for the automotive sector. He expressed the firm’s intention to achieve a robust $4 billion in automotive revenue by 2026, with this figure poised to soar to $9 billion by the close of the decade.
In late 2022, the U.S. chip design powerhouse had disclosed an impressive automotive business “pipeline” worth $30 billion. This remarkable sum owes its magnitude to the widespread adoption of Qualcomm’s Snapdragon Digital Chassis product by automobile manufacturers and their suppliers. This technology facilitates the seamless integration of advanced driver-assistance and autonomous driving systems, as well as in-car infotainment and cloud connectivity.
Cristiano Amon emphasised the company’s strategic pivot towards identifying new avenues for growth, highlighting the automotive sector as a key focal point. He underscored Qualcomm’s commitment to revolutionising the automotive landscape with its cutting-edge technologies.
Simultaneously, Qualcomm bolstered its leadership team by appointing Savi Soin as the President of Qualcomm India on August 3rd. In this role, Soin will be entrusted with steering the company’s strategic direction in the dynamic Indian market, a move indicative of Qualcomm’s commitment to expanding its global footprint.
As Qualcomm ventures deeper into the automotive realm and navigates its diversification strategy, the company’s foray into infotainment and autonomous driving systems is poised to redefine the future of in-car technology. With its significant investments and partnerships in the sector, Qualcomm aims to remain at the forefront of innovation and drive the evolution of the automotive industry.
