Chipmaker Qualcomm says automotive future business expands to $30 bln

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Sept. 22 (Reuters) – US chip designer Qualcomm Inc. (QCOM.O) on Thursday said its auto business “pipeline” had risen to $30 billion, more than $10 billion since the release of third-quarter results in late July.

Qualcomm said at Automotive Investor Day that its future business is booming thanks to its Snapdragon Digital Chassis products used by automakers and their suppliers. Snapdragon Digital Chassis can provide assisted and autonomous driving technology, as well as in-vehicle infotainment and cloud connectivity.

The number of chips used by automakers is skyrocketing due to the increase in electric vehicles and autonomous features of vehicles, making the automotive market a key growth area for chipmakers.

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Qualcomm CFO Akash Palkhiwala said:

“As the mix continues to shift to the high end, the opportunities will continue to grow.”

Qualcomm said its target automotive market could grow to $100 billion by 2030.

The company expects automotive revenues to be approximately $1.3 billion in 2022, up from $975 million in the previous year. By fiscal 2026, it will exceed $4 billion, and in fiscal 2031, he predicts it will exceed $9 billion.

Qualcomm also announced an expanded partnership with Mercedes-Benz Group AG (MBGn.DE) The company plans to use the Snapdragon Cockpit in its in-vehicle infotainment system from 2023.

Qualcomm also has many automotive customers in China. Asked about the impact of widespread US export controls, CEO Cristiano Amon said, “A strong win-win partnership between US and Chinese companies will always be a stabilizing force.” said.

“But let’s see what the future holds,” he added.

Earlier this week, chipmaker Nvidia Corp. (NVDA.O) announced New Automotive Central Computer Called Drivetor We provide autonomous driving, driving assistance, and in-vehicle digital entertainment and services.

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Reported by Jane Lanhee Lee and Akash Sriram. Editing by Sandra Maler and Richard Pullin

Our criteria: Thomson Reuters Trust Principles.

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