On Tuesday, U.S. semiconductor company Qualcomm announced that it will provide chips for in-car infotainment systems to luxury car manufacturers Mercedes and BMW.
Qualcomm, a leading supplier of chips for smartphones—a market that has experienced a downturn over the past year—is also expanding its focus to automotive applications.
The company is working with automakers to enhance various vehicle functions, including infotainment systems and advanced driver assistance systems. Despite a less optimistic outlook for smartphones, Qualcomm’s automotive revenue grew by 13% in its most recent quarter.
According to Qualcomm, it will supply BMW with chips designed to facilitate voice commands within vehicles. Additionally, the company will provide chips for the upcoming Mercedes E-Class models, which are scheduled to be available in the U.S. in 2024.
Qualcomm anticipates generating $4 billion in revenue from the automotive sector by 2026, with expectations to increase this to $9 billion by the end of the decade, as stated by Chief Executive Cristiano Amon during an interview at the Munich auto show.
In late 2022, Qualcomm had projected a $30 billion “pipeline” in its automotive business, attributed to its Snapdragon Digital Chassis product, which supports assisted and autonomous driving technology, in-car infotainment, and cloud connectivity.
Amon emphasized the company’s focus on discovering new growth areas, with automotive technology being a key focus.
Regarding the upcoming IPO of Britain-based Arm Holdings Ltd, owned by SoftBank Group Corp, Amon commented, “We are not necessarily participating in the IPO, but we believe that Arm plays an important role in the ecosystem. We want to see an independent Arm.”
