Qualcomm Inc Reports That Their Automotive Future Business Has Expanded To $30 Billion

Qualcomm Inc

The American chip designer Qualcomm Inc (NASDAQ: QCOM) reported on Thursday that the “pipeline” for its automotive business had climbed to $30 billion, an increase of more than $10 billion since its third quarter in late July was revealed. This news came on the heels of Qualcomm Inc’s announcement that its automotive business had achieved profitability for the first time in its history.

At its Automotive Investor Day, Qualcomm Inc stated that the increase in future business was because its Snapdragon Digital Chassis product was utilized by automobile manufacturers and the suppliers of those manufacturers. The Snapdragon Digital Chassis can provide technologies for assisted and autonomous driving, in-car infotainment, and communication to the cloud.

Qualcomm Inc Chips Production is Rising Due to Car Production

The number of chips used by automakers is rising because of the increase in autonomous features and electric vehicles. The automotive business has been a significant development area for chipmakers.

According to Qualcomm Inc’s Chief Financial Officer Akash Palkhiwala, “when you think about a per car basis, a lower tier automobile, we have an opportunity of around $200 ranging up to $3,000 at the top tier,” in other words.

“As we move forward, the balance will continue to shift toward the higher end, resulting in an increasing number of opportunities.”

Qualcomm Inc said that the size of its target automobile sector might reach as much as $100 billion by 2030.

It is expected that its automotive sector will earn roughly $1.3 billion in sales in the fiscal year 2022, up from $975 million the previous year. It is expected that by the end of the fiscal year 2026, it will have risen to more than $4 billion and that by the end of the fiscal year 2031, it will have risen to more than $9 billion.

A further expansion of Qualcomm Inc’s relationship with Mercedes-Benz Group AG (MBGn.DE) was also revealed. Beginning in 2023, Mercedes-Benz vehicles will be equipped with an infotainment system powered by Qualcomm Inc’s Snapdragon Cockpit.

A considerable majority of Qualcomm Inc’s automotive clients are based in China. When asked about the consequences of tighter US export regulations, CEO Cristiano Amon stated that “strong win-win cooperation between US corporations and Chinese industries will always be a force of stability.”

But, as he said, “we’ll see what the future has for us.”

Chipmaker Nvidia Corp (NVDA.O) introduced a new automotive central computer called drive thor earlier this week. Its purpose is to deliver autonomously and assisted driving and in-car digital entertainment and services.


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About the author: Valerie Ablang is a freelance writer with a background in scientific research and an interest in stock market analysis. She previously worked as an article writer for various industrial niches. Aside from being a writer, she is also a professional chemist, wife, and mother to her son. She loves to spend her free time watching movies and learning creative design.