By Stephen Nellis
SAN FRANCISCO/MUNICH (Reuters) – U.S. semiconductor firm Qualcomm on Tuesday mentioned it would provide chips to energy in-car infotainment techniques to luxurious automakers Mercedes and BMW.
Qualcomm is the main provider of the chips utilized in smartphones, a market that has slumped over the previous 12 months.
However the firm can be working with automakers to energy numerous features in autos, from infotainment techniques to superior driver help techniques, and its automotive income grew 13% in its most up-to-date quarter regardless of its smartphone outlook falling in need of analyst estimates.
Qualcomm mentioned in an announcement it would provide BMW with chips that may assist energy voice instructions contained in the automobile. It additionally mentioned it would provide chips for the following model of the Mercedes E class fashions, which might be out there within the U.S. in 2024.
The corporate expects to have $4 billion in income from the automotive sector by 2026, rising to $9 billion by the top of the last decade, Chief Govt Cristiano Amon mentioned in an interview on the sidelines of the Munich auto present.
The U.S. chip designer had introduced in late 2022 its “pipeline” within the automotive enterprise was $30 billion, due to its Snapdragon Digital Chassis product utilized by automobile makers and their suppliers for assisted and autonomous driving know-how, in addition to in-car infotainment and cloud connectivity.
“One of many issues we’re very targeted on the corporate is to seek out new areas for development… automotive is a kind of areas,” Amon mentioned.
Requested concerning the upcoming IPO of Britain-based Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp, Amon mentioned: “We’re not essentially taking part within the IPO, however we consider that Arm performs an vital position within the ecosystem. We wish to see an impartial Arm.”
(Reporting by Stephen Nellis in San Francisco, Victoria Waldersee and Christina Amann in Munich; Enhancing by Rashmi Aich and Kim Coghill)