Qualcomm is ‘successful the way forward for the auto semiconductor business’


Qualcomm updates on diversification technique, together with automotive, XR, IoT and PCs

Forward of an Automotive Investor Day occasion on Sept. 22, Qualcomm CEO Cristiano supplied an replace on the corporate’s progress into the automotive sector—together with dialogue of market developments round prolonged actuality (XR), the commercial web of issues, and private computer systems (PCs)—throughout the Goldman Sachs Communacopia + Expertise Convention. Bottomline, Amon stated of Qualcomm’s surge in automotive enterprise, “Qualcomm is absolutely successful the way forward for the auto semiconductor business.”

Qualcomm’s diversification technique, which the corporate sees opening up a possible $700 billion addressable market within the coming years, is concentrated on the “related clever edge.” The thought is to use core experience developed for cell (connectivity, compute, and synthetic intelligence), to extra kinds of cloud-connected units.

Amon described it like this: “The place we’re proper now could be actually simply altering Qualcomm from a communications firm for the cell business right into a related processor firm for the clever edge. We’re seeing quite a lot of progress alternatives…we’re not certain by a single finish market…That introduced quite a lot of pleasure again to the corporate.”

Particular to automotive, Qualcomm reported in third quarter financials on July 27, a $19 billion automotive design win pipeline, up $3 billion from the earlier quarter. The corporate has introduced main offers with Volkswagen Group, BMW, Hyundai, Volvo, Renault, Honda, Stellantis and several other others. Related merchandise embody the Snapdragon Journey superior driver-assistance system (ADAS) platform, Snapdragon Auto Connectivity, Snapdragon Cockpit, car-to-cloud providers, C-V2X and a spread of positioning options. 

“Of all of the alternatives for Qualcomm in diversification,” Amon stated, “I feel the one we’re having the quickest when it comes to successful the longer term silicon in that business is the automotive.” He stated the corporate’s differentiation is that it’s not offering a degree resolution however relatively, “We’re offering a digital chassis platform and that idea is resonating with the automobile corporations.”

Given the breadth of automotive choices and talent for personalisation, Amon stated he sees a multi-year path towards “a number of 1000’s of {dollars}” of content material in a single car. “We got here up with an answer that scales up and down even to the purpose that, in some instances, you should utilize the identical silicon to run ADAS and infotainment.”

Qualcomm “very bullish” on XR outlook

The XR umbrella covers digital actuality, augmented actuality and blended actuality. As Amon stated throughout the convention, the corporate is “very bullish” on the way forward for this section. “I feel we’re simply on the very starting of secular progress.”

One proof level he threw out is the success of Meta’s Oculus Quest 2 which reportedly handed the ten million models shipped mark on the finish of 2021, fueling the expansion of the related developer ecosystem. Throughout the latest IFA occasion, Qualcomm and Meta introduced a long-term partnership.

Amon additionally identified that as a result of platforms like Meta’s aren’t obtainable in China, there’s a giant market alternative to be cultivated. To that finish, Qualcomm is working with TikTok dad or mum firm ByteDance on XR {hardware}, software program, dev kits and extra.

On the enterprise aspect, Amon described that as a nearer-term alternative for augmented actuality as in comparison with the buyer area. It will first doubtless be an AR-based augmentation of a PC expertise—suppose a number of AR “screens” considered by means of a glasses-type gadget like Lenovo’s ThinkReality A3.

Talking of PCs, Qualcomm has been urgent ahead with its Snapdragon-based compute platform and partnership with Microsoft for Home windows on Snapdragon. Amon famous that hybrid works developments developed throughout the pandemic assist push the PC market in the direction of Qualcomm’s basic areas of experience. “For us it’s a model new market. We don’t have to plan for lots of share on this market to be very significant…We’re going after the efficiency management for next-generation PCs.”

Based mostly on its acquisition of Nuvia, Qualcomm is concentrating on customized CPUs within the second half of 2023. Qualcomm and Nuvia are being sued by Arm which alleges violations of license agreements.

Massive image, Amon stated, “What you’re going to see Qualcomm doing might be wanting into stability within the means to proceed to return capital to shareholders, but additionally protect our means to benefit from this surroundings and have a look at acquisitions that’s going to speed up our auto and IoT; very centered on auto and IoT.”

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