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Qualcomm aggressively increasing its presence in automotive
Qualcomm, the world’s main provider of semiconductors within the cell phone, has been increasing its portfolio in automotive with chips that energy the infotainment system, dashboard/cockpits, telematics and platforms for ADAS/Related expertise. Whereas the corporate just isn’t new to the automotive sector and has been supplying tech for practically 20 years, the trade’s acceleration of its transfer from offering the mechanical gadgets of yesteryear to the long run’s ‘computer systems on wheels’ has led to extra value-creating actions and alternatives for Qualcomm within the automotive sector.
In a latest growth, the corporate introduced that it’ll provide computing chips for a digital dashboard in a brand new Renault electrical automobile – the Mégane E-TECH Electrical, an vital growth that can create higher model visibility for Qualcomm within the excessive development electrical automobile (EV) market. Earlier this yr, the corporate prolonged its partnership with Normal Motors with reference to digital cockpits, next-gen telematics and ADAS growth. The OEM would deploy Qualcomm’s third era Snapdragon Automotive Cockpit Platforms in its upcoming automobiles.
The corporate – higher recognized for its cockpit, infotainment and telematics merchandise within the auto enterprise – goals to deepen its presence in future mobility options that revolve round related, electrical and autonomous tech. With its new broad automotive technique ‘Automotive Redefined’ introduced earlier this yr, the corporate goals to accentuate product growth within the cockpit, related, autonomous, infotainment, electrical charging infrastructure and different subsystems in automotive. Qualcomm presently provides infotainment and digital cockpits merchandise to 19 automakers globally and has a hefty order pipeline – practically US$10 billion. Additional strategic deal with the automotive sector is about to supply aggressive advantages and stage up Qualcomm within the automotive worth chain.
At a time when most semiconductor producers diverted provide to different industries, given the dwindled manufacturing and provide of automobiles attributable to COVID-19, it’s required that semiconductor firms – at the moment largely catering to different industries – develop their capabilities in automotive and faucet the prevailing alternatives out there. Qualcomm is a provider to each automakers and Tier 1 part makers. Whereas it goals to aggressively develop into the sector, it’s clear on its priorities and doesn’t wish to stage up as a Tier 1 within the provide chain, slightly it desires to be what Android is to smartphones, i.e. an open platform supplier, with certified software program companions, that may serve a wide range of purposes slightly than growing its personal software program for every system.
Rising mobile connectivity in automobiles is about to supply a big enhance to Qualcomm’s auto enterprise. Additional, its growth of the automotive enterprise and the resultant enhance within the provide of semiconductors would assist the trade which has been witnessing the aftermath of chip shortages as manufacturing loss.