The $30 billion automotive business “pipeline” according to American chip manufacturer Qualcomm Inc. has grown by more than $10 billion since its third-quarter results were revealed in late July.
Qualcomm stated at its Automotive Investor Day that the increase in future business was due to its Snapdragon Digital Chassis product, which is utilised by automakers and their suppliers. In-car infotainment, cloud connectivity, and assisted and autonomous driving technologies can all be offered by the Snapdragon Digital Chassis.
The number of chips used by automakers is skyrocketing as a result of electric vehicles and an increase in autonomous capabilities in automobiles, and the automotive business has been a crucial growth sector for chipmakers.
“When you think about a per car basis, a lower tier car, we have an opportunity of approximately $200 stretching to $3,000 at the high tier,” said Akash Palkhiwala, Qualcomm’s CFO.
“Going forward the mix will continue to shift towards the high end so the opportunity will keep expanding.”
According to Qualcomm, the scale of the automotive sector it is targeting might reach $100 billion by 2030.
It predicts that its automotive sector would generate around $1.3 billion in revenue in the fiscal year 2022, up from $975 million in the previous year. It projects that figure to increase to over $4 billion by the fiscal year 2026 and to over $9 billion by the fiscal year 2031.
Additionally, Qualcomm disclosed an expansion of its cooperation with Mercedes-Benz Group AG, which will start employing the Snapdragon Cockpit in 2023 for its in-car entertainment system.
In China, Qualcomm also serves a large number of automakers. CEO Cristiano Amon responded, “strong win-win partnerships between the U.S. enterprises and the China enterprises will always be a force of stability”.
A new automotive central computer called DRIVE Thor was introduced earlier this week by chipmaker Nvidia Corp. It will offer digital in-car entertainment and services as well as autonomous and assisted driving.
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