Qualcomm Announces Collaboration With Mercedes

Qualcomm Announces Collaboration With Mercedes by Adam Rosen last updated on October 03, 2023

Qualcomm Announces Collaboration With Mercedes And BMW

Qualcomm, which is a famous company in the semiconductor sector, has recently announced its plan to work with world-renowned car manufacturers like Mercedes and BMW.

Qualcomm will provide these automotive manufacturing companies with its semiconductor chips. According to the company, these chips will be used to control the infotainment systems in the cars.

The Qualcomm's collaboration with the car company BMW is officially announced. In this collaboration, the chips supplied to BMW will be used for voice commands in the cars.

Qualcomm Chips To Power Mercedes E-Class

In addition, the company is also going to provide chips for the E-class model of Mercedes cars. These car models are expected to hit the US market in 2024.

In a recent interview, the CEO of Qualcomm 'Cristiano Amon' talked about how the company feels optimistic about the automotive sector. Overall, the company plans to earn close to $4 billion in revenue by the end of 2026 from this sector alone.

By the end of the decade (2030), the company forecasts its revenue to touch $9 billion. Given Qualcomm's recent partnership with various car manufacturers, it makes sense for the company to announce these forecast numbers.

Qualcomm's CEO also added that the company is always focused on finding new growth areas. One of those areas is the automotive industry, from which the company is already earning a good amount of revenue.

In the last few years, Qualcomm has seen a major downturn in the cellphone market, which used to be one of its top earners. As a result of this downturn, the company has been trying to diversify its portfolio by focusing on other markets, such as automotive manufacturing.

It appears that the company's focus on automotive manufacturing is finally paying off, as the company posted a 13% revenue growth from this sector alone.

After the news, the QCOM shares were down by 0.18% which suggests that the news had little to no impact on the share prices.