Written by Jane Lanhi Lee and Akash Sriram
(Reuters) – US chip maker Qualcomm Inc. (NASDAQ:) said Thursday that its auto business “pipeline” has risen to $30 billion, up more than $10 billion since it reported third-quarter results in late July. .
Qualcomm said at Auto Investor Day, the leap into future business was thanks to its Snapdragon digital product used by automakers and their suppliers. The Snapdragon digital architecture can provide assistive and autonomous driving technology, as well as in-vehicle infotainment and cloud connectivity.
With electric vehicles and the increase of autonomous features in cars, the number of chips used by automakers is increasing and the auto market has been a major growth area for chip makers.
“When you think about the basis of every car, a lower-tier car, we have a chance of about $200 stretching all the way to $3,000 in the upper tier,” said Akash Palkhiwala, Qualcomm’s chief financial officer.
“Going forward the mix will continue to shift towards the high end so the opportunity will continue to expand.”
Qualcomm said its target auto market could grow to $100 billion by 2030.
In fiscal year 2022, its auto business revenue is estimated at $1.3 billion, up from $975 million in the previous year. By fiscal year 2026, it is estimated to have risen to over $4 billion and by fiscal year 2031 to over $9 billion.
Qualcomm also announced an expanded partnership with Mercedes Benz Group AG that will use the Snapdragon Cockpit for the in-vehicle infotainment system from 2023.
Qualcomm also has many auto customers in China. Asked about the impact of broader export regulations in the US, CEO Cristiano Amon said that “strong, win-win partnerships between US and Chinese companies will always be a force of stability.”
“But we will see what the future holds,” he added.
Earlier this week, chip maker Nvidia (NASDAQ:) Corp unveiled a new central vehicle computer called DRIVE Thor to provide autonomous driving and assistance as well as digital in-vehicle entertainment and services.