Qualcomm shipped its first connected car solution in 2002 and its first infotainment chipset in 2014. Over more than 15 years, it has gradually built its own portfolio of automotive solutions that have attracted many customers, but the automotive business is still a relatively small part of Qualcomm's chip business, not Qualcomm's main strategic area. Moreover, the display order of the latest content in the automotive business is still behind. For example, at CES 2017, Qualcomm first announced the news of VR and drone products in the keynote speech, and then mentioned the latest news of automotive products. Even after two years of hard work, Qualcomm ended its acquisition of automotive chip supplier NXP Semiconductors in 2018. While this failure has cost Qualcomm quite a bit, it also seems to have led Qualcomm to seriously dominate its automotive fortunes and truly begin to pursue the development of broader digital cockpits, autonomous driving, and software-defined vehicles (SDVs). Chance.

From chips to solutions to existing platforms

With the advent of 5G technology, Qualcomm has been actively pursuing the huge growth opportunities in automotive and other fields. Relying on its advantages in connectivity, Qualcomm is seeking to provide a one-stop service for automotive OEMs and Tier 1 suppliers. In 2014, Qualcomm launched the Snapdragon 602A. After continuous development, design and upgrading, Qualcomm launched the 3rd and 4th generation Snapdragon automotive digital cockpit platforms in 2019 and 2021 respectively. So far, Qualcomm has transformed from providing infotainment systems and car networking solutions to providing integrated, scalable, and customizable cloud-connected car solutions and digital platforms - the Snapdragon Digital Chassis, which will be officially released in 2021.

High-level support and investment bring development momentum

Qualcomm President and CEO Cristiano Amon has been a tireless supporter of Qualcomm's automotive business and has been a keynote speaker at several automotive and technology industry events over the past year. In a recent speech, he said: "Car companies are becoming technology companies, and cars will be connected anytime, anywhere. The Snapdragon Digital Chassis is the platform for the car of the future, and this will be another realization for us. Opportunities for rapid growth." Qualcomm continues to increase its investment in automotive research and development and has opened a new engineering software office in Berlin to increase support for European automotive partners. In addition, the acquisition of Veoneer's ADAS software division Arriver (completed in April 2022) is also an important sign of Qualcomm's determination to vigorously develop the automotive field. Automotive Tier 1 supplier Magna reached a final agreement to acquire Veoneer in July 2021, but within a few weeks, Qualcomm successfully won Veoneer by making a higher offer. Thanks to this, Qualcomm has integrated vital ADAS technology and collaborative autonomous driving technology into its portfolio of automotive solutions, especially the Snapdragon autonomous driving platform.

Qualcomm's strategic partners include more than 25 automotive OEMs, many Tier 1 suppliers and solution providers. However, various achievements in recent years, including years of technical cooperation, have put Qualcomm in a better position. In his CES 2022 keynote, Cristiano Amon said that Qualcomm is applying the same and successful approach it has used in smartphones -- not good news for incumbent suppliers in the automotive space. In its latest financial performance report, Qualcomm announced $16 billion in sales of its automotive solutions. That compares with $5.5 billion in sales in 2019 and $3 billion in 2018. In the second quarter of fiscal 2022, its automotive chip product revenue exceeded $300 million for the first time, but it still accounted for less than 4% of Qualcomm's chip business revenue.