NEW YORK — Qualcomm initiatives that its automotive contracts will generate $30 billion in gross sales, up from about $19 billion solely two months in the past, the corporate mentioned Thursday.
The fast-growing determine displays Qualcomm’s efforts to turn into a outstanding automotive presence, CEO Cristiano Amon mentioned in the course of the firm’s first automotive investor day.
On the core of Qualcomm’s automotive enterprise is its Snapdragon Digital Chassis, the corporate’s set of computing platforms to be used in connectivity, digital cockpits, vehicle-to-cloud providers and superior driver-assistance techniques.
Mercedes-Benz is the most recent automaker that Qualcomm will provide. Mercedes plans to energy its autos’ digital cockpits and telematics techniques utilizing Snapdragon by the tip of the yr, Amon mentioned, although he declined to say which nameplates will obtain the platform.
Qualcomm’s quickly rising automotive enterprise and the cope with Mercedes are a mirrored image of how well-positioned the corporate is to develop as autos turn into extra high-tech and related, Amon mentioned.
“What we now have accomplished for a lot of of our prospects is to offer confidence that they’ve a platform the place they’ve the power to innovate,” he mentioned.
Mercedes joins automakers reminiscent of Stellantis, Hyundai, Renault, Volvo, BMW and Volkswagen Group in using Qualcomm’s Snapdragon know-how. Qualcomm has invested in its automotive choices in recent times, increasing Snapdragon and buying tech provider Veoneer’s Arriver software program stack in April for about $4.5 billion.
Mercedes will use the Snapdragon cockpit platform to boost in-vehicle digital help. It is going to additionally make the most of Qualcomm’s automotive connectivity platform, enabling “ultra-fast connectivity” and “fast community response instances” wanted for superior security techniques, in response to the tech big.
Qualcomm CFO Akash Palkhiwala mentioned the corporate was on observe to ship $1.3 billion in automotive income in the course of the present fiscal yr, up from about $975 million a yr earlier. It expects automotive income to leap to greater than $4 billion by the 2026 fiscal yr and greater than $9 billion by 2031.
A few of that progress is being pushed by corporations turning to Qualcomm for its Snapdragon Experience platform, which is to be used in superior driver-assistance and autonomous driving techniques. As automakers roll out more and more automated autos within the coming years, Qualcomm expects gross sales to rise.
“As we glance ahead over the subsequent two years, we anticipate a number of OEMs to make selections on platform selections, and we expect we now have an incredible platform for them,” Palkhiwala mentioned.
A lot of the surge in Qualcomm’s automotive enterprise is being pushed by automakers reminiscent of Mercedes wanting to make use of its Snapdragon platform of their superior digital cockpits.
Automakers wish to make the most of massive screens to offer new providers to prospects, opening up income streams for them, Amon mentioned. Qualcomm’s know-how permits that, he mentioned.
“I feel there is a common understanding inside all of the OEMs that digital providers within the automobile goes to be the distinction between the profitable corporations and the not-so profitable corporations sooner or later,” Amon mentioned. “For the primary time, automobile corporations have a chance to have a direct relationship with the automobile proprietor in actual time.”
Qualcomm can also be wanting into offering Snapdragon to automated last-mile supply answer corporations and to makers of e-bikes and different two-wheeled autos, mentioned Nakul Duggal, Qualcomm’s automotive chief.
“There is a great quantity of alternative in that house as a result of these platforms additionally require connectivity, intelligence and security,” he mentioned. “We’re designing the chassis to be miniaturized for various kind components.”
The Mercedes deal comes days after Nvidia showcased its newest high-performance laptop supposed for automotive functions.
Qualcomm is trying to differentiate itself from rivals reminiscent of Nvidia and Mobileye by offering “capabilities throughout domains” and “full scalability” for purchasers, Amon mentioned.
“As an alternative of offering a chip, we’re offering a full module, with every little thing in a board that may be built-in,” he mentioned. “That is one solution to speed up the adoption of a few of these applied sciences.”
Individually, Qualcomm mentioned it was working with open-source supplier Purple Hat to carry Linux-based working techniques to next-generation autos that use the Snapdragon Digital Chassis.
The partnership will assist automakers conduct “less complicated and extra environment friendly car” updates, velocity the deployment of recent digital providers and bolster connectivity, Qualcomm mentioned. Combining Snapdragon platforms with Purple Hat’s working system is predicted to permit automakers to “deal with increased ranges of cybersecurity necessities” and privateness certifications.
Qualcomm intends to supply variations of its Snapdragon platforms for the digital cockpit and driver-assistance techniques built-in with Purple Hat’s in-vehicle working system beginning within the second half of 2023.
“Software program-defined autos carry an thrilling alternative for all the automotive ecosystem to transcend the present capabilities of the car,” mentioned Invoice Pinnell, Qualcomm vp of automotive product administration.