San Diego, May 9, (tca/dpa/GNA) – Qualcomm beefed up its automotive processor business on Monday by agreeing to acquire vehicle-to-everything chip outfit Autotalks.
The purchase price was not disclosed. Founded in 2008, Autotalks is based in Israel and has roughly 115 employees. Its technology fits into a field that Qualcomm has long championed: crash safety protections.
Known as V2X, the technology not only pinpoints other nearby vehicles but also bicyclists, pedestrians, stoplights, tolls and other gear that also contains vehicle-to-everything processors — either in a smartphone or standalone equipment.
“We have been investing in V2X research, development and deployment since 2017 and believe that as the automotive market matures, a standalone V2X safety architecture will be needed for enhanced road user safety, as well as smart transportation systems,” said Nakul Duggal, senior vice president and general manager of Qualcomm’s automotive business unit.
The automotive market is a key part of Qualcomm’s efforts to diversify its business beyond the maturing smartphone market, where it is a leading chipmaker for Android phones and also supplies Apple with modem chips.
Last fall, the San Diego company announced its pipeline of pending orders for car makers had topped $30 billion — though much of that is still a few years into the future.
Qualcomm provides Snapdragon connectivity, infotainment, digital dashboard, digital chassis and autonomy technologies to automakers in a low-energy package that is important for electric vehicles. It competes with Nvidia and Mobileye, among others.
Revenue for Qualcomm’s automotive arm increased 44.5% to $1.4 billion during its most recent fiscal year, which ended in September. The momentum has continued this fiscal year, with revenue up 37% to $903 million during the first two quarters.
Autotalks’ investors include Gemini Israel Ventures, Magma, Amiti, Foxconn Interconnect and Samsung Catalyst fund. It did not disclose how much it has raised over the years.
Hagai Zyss, chief executive of Autotalks, said the acquisition aims to accelerate the adoption of vehicle-to-everything technology.
Qualcomm’s shares ended trading Monday down 47 cents at $108.31 on the Nasdaq exchange.
GNA