Qualcomm Expanding Automotive Presence: Supplying BMW and Mercedes with Advanced In-Car Chips


US chipmaker Qualcomm is venturing into the luxury automotive market, providing chips to power in-car infotainment systems for renowned brands such as BMW and Mercedes-Benz. This strategic move by Qualcomm comes at a time when the smartphone chipset market faces challenges and a shift in demand, prompting the company to explore new opportunities for growth.


Driving Innovation in Infotainment

Qualcomm’s presence in the automotive industry has been gaining momentum, with a notable 13% increase in automotive revenue during its latest quarter. The company’s commitment extends beyond infotainment systems to encompass advanced driver assistance systems and other automotive technologies.


Empowering BMW and Mercedes

For BMW, Qualcomm will supply chips designed to enhance voice command capabilities within the vehicle. Additionally, Qualcomm is set to collaborate with Mercedes-Benz to develop chips for the upcoming iteration of the E-Class models, slated for a US release in 2024.


Promise of Growth

This expansion into the automotive sector holds significant promise, with Qualcomm anticipating revenues of $4 billion from the automotive industry by 2026. CEO Cristiano Amon envisions Qualcomm’s automotive revenue reaching $9 billion by the end of the decade.


Robust Automotive Pipeline

In 2022, Qualcomm unveiled a robust automotive “pipeline” valued at $30 billion. This includes Qualcomm’s Snapdragon Digital Chassis product, which has gained traction among car manufacturers and suppliers for its role in assisted and autonomous driving technologies, as well as in-car infotainment and cloud connectivity solutions.


A Vision for the Future

Amon underscores Qualcomm’s dedication to identifying new avenues for growth, with a strong focus on the burgeoning automotive sector.


Supporting Arm’s Independence

Qualcomm has also expressed interest in the upcoming IPO of UK-based Arm Holdings Ltd, which is currently owned by SoftBank. While Qualcomm may not directly participate in the IPO, the company recognizes the significance of maintaining Arm’s independence within the tech ecosystem.

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