Qualcomm said the automotive market size it is targeting could grow to as large as $100 billion (roughly Rs. 8,09,500 crore) by 2030.
Qualcomm also announced an expanded partnership with Mercedes Benz Group AG
US chip designer Qualcomm Inc on Thursday said its automotive business "pipeline" increased to $30 billion (roughly Rs. 2,42,770 crore), up more than $10 billion (roughly Rs. 81,000 crore) since its third quarter results were announced in late July.
The jump in future business was thanks to its Snapdragon Digital Chassis product used by car makers and their suppliers, Qualcomm said at its Automotive Investor Day. The Snapdragon Digital Chassis can provide assisted and autonomous driving technology, as well as in-car infotainment and cloud connectivity.
With electric vehicles and increasing autonomous features in cars, the number of chips used by automakers is surging and the automotive market has been a key growth area for chipmakers.
"When you think about a per car basis, a lower tier car, we have an opportunity of approximately $200 stretching all the way to $3,000 (roughly Rs. 2.4 lakh) 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."
Qualcomm said the automotive market size it is targeting could grow to as large as $100 billion (roughly Rs. 8,09,500 crore) by 2030.
In fiscal year 2022, it estimates its automotive business revenue will be about $1.3 billion (roughly Rs. 10,520 crore), from $975 million (roughly Rs. 7,900 crore) the previous year. By fiscal year 2026, it estimates that to rise to over $4 billion (roughly Rs. 32,400 crore) and in fiscal year 2031 to over $9 billion (roughly Rs. 72,850 crore).
Qualcomm also announced an expanded partnership with Mercedes Benz Group AG which will be using the Snapdragon Cockpit for its in-car infotainment system from 2023.
Qualcomm also has many automotive customers in China. Asked about the impact of broader US export regulations, CEO Cristiano Amon said "strong win-win partnerships between the US enterprises and the China enterprises will always be a force of stability".
"But we'll see what the future holds," he added.
Earlier this week, chipmaker Nvidia unveiled a new automotive central computer called DRIVE Thor to provide autonomous and assisted driving as well as in-car digital entertainment and services.
© Thomson Reuters 2022
Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.