Qualcomm said that the “revenue reserve” of its automotive business had increased to $30 billion, an increase of more than $10 billion from when it announced its third-quarter earnings at the end of July.
Qualcomm said at this week's "Automotive Business Investor Day" that the substantial improvement in future performance is mainly due to the selection of "Snapdragon digital chassis" products by automakers and their suppliers. The Snapdragon digital chassis provides assisted driving and autonomous driving technologies, as well as in-vehicle infotainment services and connected car services.
With the development of electric vehicles and autonomous driving functions, the number of chips used by automakers has grown rapidly, and the automotive market has become a key growth area for chipmakers. Akash Palkhiwala, Qualcomm's chief financial officer, said: "In terms of average revenue per vehicle, our opportunity ranges from about $200 to $3,000. Going forward, the business composition will be a high-end market. tilt, so the opportunity will continue to expand.”
Qualcomm said the targeted automotive market could reach $100 billion by 2030.
The company estimates that automotive revenue will increase to about $1.3 billion in fiscal 2022, up from $975 million in the previous fiscal year. That figure will exceed $4 billion by fiscal 2026, rising further to more than $9 billion by fiscal 2031.
Qualcomm also announced the expansion of its partnership with Mercedes-Benz Group. The latter will use the "Snapdragon Cockpit" product in in-vehicle infotainment systems starting in 2023.
Qualcomm also has many automotive customers in the Chinese market. "A strong win-win partnership between U.S. and Chinese companies is always a stabilizing force," said Qualcomm CEO Cristiano Amon.
Earlier this week, Nvidia also unveiled a new central computing system for cars that provides autonomous and assisted driving technology, as well as in-car digital entertainment and other services.
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