Chipmaker Qualcomm Says Future Auto Industry Expands to  Billion

Chipmaker Qualcomm Says Future Auto Industry Expands to $30 Billion

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Sept 22 (Reuters) – U.S. chip designer Qualcomm Inc (QCOM.O) said on Thursday its auto industry “pipeline” has grown to $30 billion, up more than $10 billion since its third-quarter results were announced at the end of July.

The jump in future business was due to the Snapdragon Digital Chassis product used by automakers 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 functions in cars, the number of chips used by car manufacturers is increasing and the car market is an important growth area for chip makers.

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“If you think of a car by car, a lower level car, we have a probability of about $200 extending to $3,000 at the higher level,” said Qualcomm CFO Akash Palkhiwala.

“Going forward, the mix will continue to shift to the high end, so the opportunity will continue to expand.”

Qualcomm said the size of the auto market it targets could grow to $100 billion by 2030.

In fiscal 2022, it estimates auto industry revenues will be about $1.3 billion, up from $975 million the previous year. By fiscal year 2026, it estimates this will rise to more than $4 billion and to more than $9 billion by fiscal year 2031.

Qualcomm also announced an expanded partnership with Mercedes Benz Group AG (MBGn.DE), which will use 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 that “strong win-win partnerships between US companies and Chinese companies will always be a force of stability.”

“But we’ll see what the future holds,” he added.

Earlier this week, chipmaker Nvidia Corp (NVDA.O) unveiled a new central car computer called drive thor to provide autonomous and assisted driving, as well as in-car digital entertainment and services.

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