Qualcomm reported on Sept. 22 that its automotive business "pipeline" had grown to $30 billion, an increase of more than $10 billion since its third quarter results were released in late July.
The number of chips used by automakers is rising as electric vehicles and autonomous driving capabilities become more prevalent, and the automotive market has been a crucial growth sector for chipmakers.
Qualcomm said at its Automotive Investor Day that the increase in future business was due to the usage of its Snapdragon Digital Chassis product by automakers and their suppliers. Along with in-car infotainment and cloud connectivity, the Snapdragon Digital Chassis can offer technology for assisted and automated driving.
"When you think about a per car basis, a lower tier car, we have an opportunity of approximately $200 stretching all the way to US$3,000 at the high tier, Akash Palkhiwala, Qualcomm's CFO said. "Going forward the mix will continue to shift towards the high end so the opportunity will keep expanding."
According to Qualcomm, the scale of the automotive sector it is targeting might reach $100 billion in U.S. dollars by 2030. It projects that its automotive sector would generate around$1.3 billion in revenue in the fiscal year 2022, up from US$975 million in the prior year. It is anticipated to increase to over $4 billion by the fiscal year 2026 and to over $9 billion by the fiscal year 2031.
Additionally, Qualcomm disclosed an expansion of its cooperation with Mercedes-Benz Group, which will start employing the Snapdragon Cockpit in 2023 for its in-car entertainment system.
In China, Qualcomm also serves a large number of automakers. CEO Cristiano Amon responded, "strong win-win partnerships between the US enterprises and the China enterprises will always be a force of stability" when asked about the effects of expanded US export controls.
"But we'll see what the future holds," he added.
A new vehicle central computer called DRIVE Thor was also announced this week by chipmaker Nvidia Corp. It will offer digital in-car entertainment and services in addition to autonomous and assisted driving.
Qualcomm is a worldwide American company with its main office in San Diego, California. It was founded in Delaware. It produces software, chips, and services for wireless technology. It is the owner of patents that are essential to the mobile communications standards for 5G, 4G, CDMA2000, TD-SCDMA, and WCDMA.