The automobile industry is becoming an increasingly important market for chipmakers such as Qualcomm as the number of electric vehicles and cars equipped with advanced driver assistance systems (ADAS) grows.
American multination tech giant Qualcomm Inc (NASDAQ: QCOM) is looking at expanding its footprint in the automotive business through the acquisition of Autotalks, an Israeli firm that specializes in producing chips used in vehicle crash prevention technologies.
Qualcomm announced on Monday that it would include Autotalks’ solutions in its Snapdragon Digital Chassis product portfolio. Notably, the Snapdragon Digital Chassis can be used to enable in-car infotainment and cloud connectivity.
According to reports, Qualcomm stated last year that its automotive business “pipeline” has grown to $30 billion, recording an increase of more than $10 billion since a late July disclosure.
Qualcomm is a multinational technological business that creates semiconductors, software, and other related products. In addition to its focus on mobile technologies, Qualcomm also has a significant presence in the automotive and networking industries, providing solutions for areas such as connected cars, artificial intelligence, and 5G networks.
On the other hand, Autotalks specializes in developing communication chips and software designed specifically for the automotive industry. The company’s technology is primarily used in vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication systems that allow cars to communicate with each other and with roadside infrastructure in real time.
Ultimately, this acquisition would allow Qualcomm to provide a broader choice of solutions to automakers and boost its competitiveness in the expanding market for connected and autonomous vehicles.
“We have been investing in V2X research, development and deployment since 2017 and believe that as the automotive market matures, a standalone V2X safety architecture will be needed for enhanced road user safety, as well as smart transportation systems,” said Nakul Duggal, senior vice president & GM, automotive, Qualcomm Technologies, Inc. “We share Autotalks’ decades-long experience and commitment to build V2X technologies and products with a focus on solving real-world road user safety challenges,” added he.
Qualcomm Autotalks Acquisition: New Focus for Chip Makers
The automobile industry is becoming an increasingly important market for chipmakers such as Qualcomm as the number of electric vehicles and cars equipped with advanced driver assistance systems (ADAS) grows.
Markedly, these systems rely significantly on electronic components such as semiconductors and microchips, which power sensors, and cameras in the vehicle. As a result, automakers are investing more in electronic and digital technology to remain competitive and fulfill changing customer demands, resulting in an increase in chip demand.
Additionally, the rise of electric and self-driving vehicles has opened up new opportunities for chipmakers to deliver solutions in important areas like battery management, power electronics, and connectivity.
According to forecasts, the industry is expected to grow more in the coming years as the trend toward electrification and automation accelerates. This projected growth has been cited as yet another positive point in the acquisition deal between Qualcomm and Autotalks.
Qualcomm shares pared off some losses following the announcement, they are down 0.13% in the pre-market to $108.64
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