Qualcomm to supply BMW, Mercedes chips for displays, voice features

US semiconductor giant Qualcomm has announced that it will supply chips to power in-car infotainment systems for luxury automakers Mercedes and BMW. While Qualcomm is primarily known for its smartphone chips, the company has been expanding its presence in the automotive sector, working with automakers on various vehicle functions, including infotainment and advanced driver assistance systems. Despite a recent slowdown in the smartphone market, Qualcomm's automotive revenue grew by 13 per cent in its most recent quarter. The company anticipates generating $4 billion in revenue from the automotive sector by 2026, with a goal of reaching $9 billion by the end of the decade.

What all will Qualcomm offer?

Qualcomm's collaboration with BMW involves supplying chips to enhance voice command capabilities within the car. Additionally, Qualcomm will provide chips for the next version of Mercedes E-class models, expected to launch in the US in 2024.

The company's commitment to the automotive industry is further underscored by its Snapdragon Digital Chassis product, which is utilised by car manufacturers and suppliers for various automotive technologies, including assisted and autonomous driving, in-car infotainment, and cloud connectivity. Qualcomm's automotive "pipeline" is valued at $30 billion, reflecting its strategic investments in this sector.

Chief Executive Cristiano Amon emphasised Qualcomm's focus on identifying new growth opportunities, with the automotive industry being a prominent area of interest. While Qualcomm is not directly participating in the upcoming IPO of Arm Holdings Ltd, a chip designer owned by SoftBank Group Corp, Amon emphasised the importance of an independent Arm within the tech ecosystem.

(With Reuters Inputs)