well,
Qualcomm seeing huge potential for its semiconductors in the automotive space.
The US based chipmaker holy its first ever auto investor day on thursday
announcing that its automotive business pipeline jumped some $10 billion in
just the past two months thanks to big deals with major automakers
as chief financial Officer, akash
WAla, sitting down with better news, senior reporter Michele Castelli
earlier,
Michelle started off by asking the CFO about that big event yesterday take a look.
So we had a great event yesterday and we're
very excited about the announcements we made um,
if you think about what the auto industry is going through,
it's really a once in a lifetime transformation
of the industry and it's not just electrification,
it's autonomous driving features coming into cars and
the car really becoming a software defined vehicle
and that creates tremendous opportunities for welcome because
it requires the technologies that we already have.
And uh,
and so we have this product offering that we've created for the auto industry,
we call it our digital chassis products and it includes connectivity,
where we sell all kinds of connectivity chips that
connect the car to the cloud digital cockpit,
which is chips that transform the experience of the consumer inside the car.
Um, and then finally our adas and autonomous driving chip sets and software.
So we have a very strong portfolio of
products and we're excited about showing that off.
One of the big announcements we made yesterday
was we announced that our design win pipeline,
which is really the kind of the revenue value of uh,
designs that have been awarded to us increased from 19 billion to 30 billion
and over the last two months it has gone up by $11 billion.
And
this is a big portion of that increase.
So just extremely exciting for us, The industry is going through transformation.
We have the technology that enables it and our customers
are rewarding us for bringing the technology to the table.
I wanted to go back to something you talked about, which is that snapdragon Chase E.
So what makes it so valuable for new vehicles?
Yeah, that's a that's a great question.
Um,
what we have in the snapdragon chassis
is really an integrated platform that cuts across
digital cockpit connectivity and Adidas and it combines hardware and software.
So it's as much about software as it is about hardware
and there's tremendous amount of complexity in the auto industry.
They need the right quality, they need to support the right features,
they need long lifetime support.
And we're combining all of that into one product line.
That if you're a major global O E m
really Qualcomm becomes the one option you have uh,
that meets all your needs all together.
And we can go from a very low tier car to a very premium tier car.
And we cut across all these different domains that I just discussed.
So very comprehensive product offering and you're seeing the recognition of that
in the design win pipeline that we announced the O E.
M. S are extremely interested and that they see us as a key enabling partner
for their ambitions.
Now we know that electric vehicle adoption is growing,
but is the semiconductor space ready to scale up with it?
And how long do you see demand outpacing supply for these chips?
Yeah, I mean, the, the opportunity in the automotive industry is tremendous.
So we outlined an addressable market for us of $100 billion.
That's, that's just tremendous scale that is going to be added.
And, and this is over a period of the next 10 years, uh, the automotive industry, uh,
as it grows, the chip industry and especially players like welcome,
we're scaling up our capabilities to support the growth.
And, and this is not just from a technology perspective,
but also from a supply perspective.
And, and as you're well aware,
I'm sure that the supply constraints that we've had over the last couple of years,
uh, those have normalized to a very large extent.
And, and clearly us with our suppliers,
we're investing in the long term so that we can support the automotive now,
what have you heard from automakers about what kind
of chips they'll be needing in the coming years?
Well, so, uh, if you think about the car,
the first thing they want to do is connect the car to the cloud.
And so we, we have four G five G chips,
but we also have wifi and Bluetooth and position location and
all these chips are going to be needed in cars.
The second is just inside the car,
changing the experience from kind of old dashboard to a new and
modern dashboard that provides a significant amount of information to the driver
and uh, and also does monitoring from the driver's side as well.
So there's a lot of information that that screen can give you and
there's additional technology needed for that and
we'll be supplying chips for that.
And then finally, as we talked about it as that's,
that's an area as well that they're demanding incremental
chips and and we're very happy to oblige.
Now there's a growing tense situation between china and the US over.
Taiwan is qualcomm in any way reducing its reliance on Taiwan.
Semiconductor manufacturing.
Yeah, so you know, we, we work with a series of suppliers, I mean it's not just TSMC,
they're one of our key suppliers,
but we also work with Samsung to manufacture our chips and so we're actually
more diversified than most other chip companies
and and we're looking for all options.
I mean we are, we're big supporter of the chips act,
we're seeing more and more companies taking advantage
of it and building capacity here and we're looking
forward to having more manufacturing in the US and
US being able to take advantage of them.
Thanks again to qualcomm, CFO, akash
wala and china news, senior reporter Michelle Castelluccio