Qualcomm Supplying Chips to BMW, Mercedes to Power Infotainment Systems

Qualcomm semiconductor company based in San Diego, California, has signed a business partnership deal with Mercedes-Benz and BMW for the supply of chips. The company will deliver semiconductor products to the automakers for their infotainment systems.

Likewise, Qualcomm will provide chips to power special functions in vehicle models of Mercedes-Benz and BMW, such as voice features and useful displays. The advanced chips are designed to enhance the infotainment system in the luxury vehicles.

According to Reuters, the American semiconductor firm revealed its latest supply agreement with the German carmakers on Tuesday, Sept. 5. While the company is best known to be a leading supplier of chips for smartphones, it has expanded its products over the years to include automotive semiconductors and others.

These collaborations for in-car chips are expected to help Qualcomm fully recover from a market slump it had to endure over the past year. Aside from infotainment systems, the company is also working with car brands to create specific chips required for other functions in vehicles.

Through its latest projects in the automotive sector, Qualcomm is slowly getting back on track after falling short of analysts' estimates for its smartphone chips. Its earnings from auto semiconductor products increased by 13%.

The chipmaker expects its revenue to continue growing and reach $4 billion by 2026 through the automotive sector. Its chief executive officer, Cristiano Amon, said that by the end of the decade, they can see the amount rising to $9 billion as its partnerships with car brands are going smoothly.

"One of the things we are very focused on the company is to find new areas for growth, and automotive is one of those areas," Amon said during a sideline interview at the Munich Auto Show that opened this week.

Businessworld also quoted Qualcomm’s senior vice president and general manager, Nakul Duggal, as saying, “Qualcomm Technologies is pleased with the momentum we’re seeing with our Snapdragon Digital Chassis providing state-of-the-art digital capabilities and features for drivers and passengers of BMW’s new vehicles.”

Duggal added, “Through the Snapdragon Digital Chassis solutions, we are empowering BMW, as well as the broader automotive ecosystem, to rapidly transform their vehicles for the digital era. We look forward to continuing our work with BMW Group to rapidly bring innovative and industrially competitive features to market.”

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