Qualcomm, a leading US-based mobile chipset manufacturer, is betting heavily on artificial intelligence (AI) and PC chips to challenge the market dominance of Intel and Apple. The company is also gearing up to commence 3-nanometer (nm) manufacturing. In a discussion, the company’s CFO, Akash Palkhiwala, delved into topics such as 5G and 6G technologies, the transition to AI, the company’s focus on the automotive industry, its presence in India, and workforce realignment as part of an expansion strategy.
All About Qualcomm’s Plans
Qualcomm’s focus extends beyond mobile connectivity, as its technology portfolio covers connectivity technologies, generative AI, and a wide array of applications that span smartphones, PCs, metaverse, XR devices, automotive, industrial use cases, and more. The company distinguishes itself by providing integrated chips that encompass 4G, 5G, CPU, GPU, and AI in one piece of silicon.
In the automotive sector, the chip company leads the transition to digitization, emphasizing cloud connectivity, creating smartphone-like experiences in car dashboards, and developing solutions for autonomous driving. Tata Motors and Mahindra Auto are among Qualcomm’s customers in India, with their models incorporating Qualcomm’s cockpit platforms. However, Maruti’s adoption of Qualcomm’s technology depends on their product decisions.
Qualcomm sees India as a significant market due to its growing digitization, where mobile devices have become more than just phones. The company also envisions opportunities in manufacturing, especially for building wireless networks in manufacturing environments to establish private 5G networks.
Regarding the supply chain, the chip company believes that supply chain issues have stabilized compared to previous years. The chip company is already a diversified player within the chip industry, but it anticipates further diversification as more countries enter chip manufacturing.
The chip company has been actively involved in shaping standards for wireless technologies like 3G, 4G, and 5G, and is already embarking on the journey towards 6G technology standards. Lastly, Qualcomm’s recent workforce reduction is part of a broader realignment process as the company expands beyond handsets and invests in new areas, as announced in the last earnings call.
