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 offered an replace on the corporate’s progress into the automotive sector—together with dialogue of market traits round prolonged actuality (XR), the economic web of issues, and private computer systems (PCs)—through the Goldman Sachs Communacopia + Know-how Convention. Bottomline, Amon stated of Qualcomm’s surge in automotive enterprise, “Qualcomm is basically successful the way forward for the auto semiconductor trade.”
Qualcomm’s diversification technique, which the corporate sees opening up a possible $700 billion addressable market within the coming years, is targeted on the “related clever edge.” The thought is to use core experience developed for cellular (connectivity, compute, and synthetic intelligence), to extra forms of cloud-connected gadgets.
Amon described it like this: “The place we’re proper now could be actually simply altering Qualcomm from a communications firm for the cellular trade right into a related processor firm for the clever edge. We’re seeing quite a lot of progress alternatives…we’re now not sure 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 embrace the Snapdragon Experience superior driver-assistance system (ADAS) platform, Snapdragon Auto Connectivity, Snapdragon Cockpit, car-to-cloud companies, 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 by way of successful the longer term silicon in that trade is the automotive.” He stated the corporate’s differentiation is that it’s not offering some extent answer however quite, “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 personalization, Amon stated he sees a multi-year path towards “a number of hundreds 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 through the convention, the corporate is “very bullish” on the way forward for this phase. “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. Through 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 accessible in China, there’s a giant market alternative to be cultivated. To that finish, Qualcomm is working with TikTok mum or dad firm ByteDance on XR {hardware}, software program, dev kits and extra.
On the enterprise facet, Amon described that as a nearer-term alternative for augmented actuality as in comparison with the patron house. It will first probably be an AR-based augmentation of a PC expertise—assume a number of AR “screens” considered by means of a glasses-type machine 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 traits developed through the pandemic assist push the PC market in direction of Qualcomm’s elementary areas of experience. “For us it’s a model new market. We don’t must plan for lots of share on this market to be very significant…We’re going after the efficiency management for next-generation PCs.”
Primarily based 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.
Huge image, Amon stated, “What you’re going to see Qualcomm doing might be wanting into steadiness within the means to proceed to return capital to shareholders, but in addition protect our means to make the most of this surroundings and take a look at acquisitions that’s going to speed up our auto and IoT; very targeted on auto and IoT.”
