US-based chipmaker Qualcomm has a new chip for luxury automakers. The company has announced that it will supply chips to power in-car infotainment systems in Mercedes and BMW cars. Qualcomm is a major player in the smartphone chipset market, which has declined over the past years and fell short of analyst estimates in the last quarter.
So, the company is working with several automakers as the chipmaker’s automotive revenue grew 13% in its latest quarter. From infotainment systems to advanced driver assistance systems, Qualcomm has invested a lot in auto tech.
Qualcomm’s new chips for BMW, Mercedes
In a statement to Reuters, Qualcomm said that it will supply BMW with chips that will help power voice commands inside the car. The company also announced its plans to supply chips for the next version of the Mercedes E class models, which will be available in the US in 2024.
The company expects to earn $4 billion in revenue from the automotive sector by 2026. This will raise Qualcomm’s automotive revenue to $9 billion by the end of the decade, CEO Cristiano Amon said in an interview at the Munich auto show.
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In 2022, the chipmaker announced its “pipeline” in the automotive business was $30 billion. This was helped by Qualcomm’s Snapdragon Digital Chassis product used by car makers, its suppliers for assisted and autonomous driving technology, along with its in-car infotainment and cloud connectivity.
“One of the things we’re very focused on the company is to find new areas for growth… automotive is one of those areas,” Amon added.
Qualcomm on Arm’s IPO
Qualcomm has also explained its involvement in the upcoming IPO of UK-based SoftBank-owned Arm Holdings Ltd. Amon said: “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.”
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