Chipmaker Qualcomm says automotive future business expands to $30 bn
On Thursday, U.S. chip designer Qualcomm Inc revealed that its automotive business “pipeline” has surged to $30 billion, marking a significant increase of over $10 billion since the announcement of its third-quarter results in late July. This boost in future business is attributed to the success of its Snapdragon Digital Chassis product, widely utilized by car manufacturers and their suppliers. The Snapdragon Digital Chassis offers advanced technology for assisted and autonomous driving, in-car infotainment, and cloud connectivity.
Given the rise of electric vehicles and the growing integration of autonomous features in cars, there has been a substantial surge in the demand for chips by automakers, making the automotive market a pivotal growth area for chip manufacturers. Qualcomm’s CFO, Akash Palkhiwala, highlighted the potential opportunities, stating that on a per-car basis, the company has opportunities ranging from approximately $200 to $3,000, with the trend shifting towards higher-end vehicles.
Qualcomm envisions the automotive market it is targeting to potentially grow to as large as $100 billion by 2030. For fiscal year 2022, it anticipates automotive business revenue to be around $1.3 billion, a notable increase from $975 million the previous year. Looking ahead, Qualcomm projects this figure to surpass $4 billion by fiscal year 2026 and exceed $9 billion by fiscal year 2031.
In addition to its overall success in the automotive sector, Qualcomm announced an expanded partnership with Mercedes Benz Group AG. The collaboration involves the use of the Snapdragon Cockpit for Mercedes’ in-car infotainment system, scheduled to be implemented from 2023.
Responding to concerns about broader U.S. export regulations and its impact on Qualcomm’s automotive customers in China, CEO Cristiano Amon emphasized the importance of strong and mutually beneficial partnerships between U.S. and Chinese enterprises as a stabilizing force. However, he acknowledged the uncertainties in the future landscape.
This announcement comes in the wake of chipmaker Nvidia Corp introducing a new automotive central computer named DRIVE Thor earlier in the week. DRIVE Thor is designed to offer autonomous and assisted driving capabilities, along with in-car digital entertainment and services.
On Thursday, U.S. chip designer Qualcomm Inc revealed that its automotive business “pipeline” has surged to $30 billion, marking a significant increase of over $10 billion since the announcement of its third-quarter results in late July. This boost in future business is attributed to the success of its Snapdragon Digital Chassis product, widely utilized by…