On Tuesday, Qualcomm, the prominent U.S. semiconductor company, announced its agreement to provide chips for in-car infotainment systems to the prestigious automakers Mercedes and BMW. Qualcomm, which dominates the smartphone chip market, has seen a decline in that sector over the past year.
As per Reuters, despite falling short of analyst estimates in the smartphone sector, Qualcomm has been actively collaborating with automakers to support a range of functions in vehicles. This includes powering not only infotainment systems but also advanced driver assistance systems. In its most recent quarter, the company experienced a 13 per cent growth in automotive revenue.
In a statement, Qualcomm announced its intention to provide BMW with chips designed to enhance voice command functionality within their vehicles. Additionally, Qualcomm will supply chips for the upcoming iteration of Mercedes E class models, set to be released in the United States in 2024.
During an interview at the Munich auto show, Chief Executive Cristiano Amon stated that the company anticipates achieving $4 billion in revenue from the automotive sector by 2026, with this figure projected to increase to $9 billion by the end of the decade.
In late 2022, the U.S. chip designer had disclosed that its automotive business “pipeline” amounted to $30 billion. This impressive figure was attributed to the widespread adoption of its Snapdragon Digital Chassis product by car manufacturers and their suppliers, facilitating the integration of assisted and autonomous driving technology, as well as in-car infotainment and cloud connectivity.
“One of the things we’re very focused on in the company is to find new areas for growth… automotive is one of those areas,” Amon said.
Meanwhile, Qualcomm has recently appointed Savi Soin as the President of Qualcomm India on August 3. He will be responsible for guiding the company’s strategy in the Indian market. The statement said, “Qualcomm Incorporated today announced the appointment of Savi Soin as senior vice president and president of Qualcomm India,” reported PTI.
(With inputs from Reuters)
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Updated: 05 Sep 2023, 05:52 PM IST