Qualcomm’s long-term bet on the automotive sector as a lucrative customer base for its chips and related communications technology is getting a significant boost today: the company Announced What are you acquiring? automatic conversationsto no fable Israeli chipmaker building semiconductor technology and systems-on-a-chip to aid in automotive safety; sources tell us that Qualcomm is paying between $350 million and $400 million for the startup.
Autotalks technology is used in sensors that help vehicles (which can be bicycles, cars, or other forms of mobility) and their drivers detect hazards on the road, such as oncoming vehicles in the driver’s blind spots; it also communicates with other vehicles using compatible technology to improve responsiveness. Qualcomm said the plan will be to integrate Autotalks’ V2X (vehicle-to-everything) communication technology into its mobility-focused Snapdragon Digital Chassis portfolio.
Financial terms of the acquisition are not disclosed, but a source close to the deal tells us it is a $350-$400 million deal. We’ve reached out to Qualcomm for comment and will update as we learn more.
Autotalks, founded in 2009, has raised $110 million, according to data from tone book. Its many backers included a number of strategic investors such as Samsung, Hyundai and Toyota, as well as financial backers such as Gemini Israel and Magma Venture Partners.
Qualcomm has taken an interesting momentum in its automotive business to date, with clients including VW, General Motors, Mercedes-Benz, Cadillac, Honda, and Stellantis. In September of last year it claimed a $30 billion “win-design pipeline” in automotive, though that’s more of a long-term idea than a solid concept. In more concrete numbers, its QCT division (CDMA’s core business covering mobile and wireless chips and related technology) posted automotive revenue of $975 million in fiscal 21 and $1.3 billion in fiscal 22.
It’s not a huge surprise to see Qualcomm pick up a company like Autotalks. In the world of advanced automotive technology, safety has become one of the most important issues, but also one of the most lucrative opportunities, in building driver-assisted and autonomous systems. As the core feature and solution that customers are most likely to use, it also becomes one that automakers are most likely to invest in when designing newer car models, regardless of the longer timelines for fully autonomous systems. . Therefore, strengthening Qualcomm’s capabilities and product portfolio in this area is a logical next step.
“We have been investing in V2X research, development and implementation since 2017 and believe that as the automotive market matures, a standalone V2X safety architecture will be needed to improve road user safety, as well as intelligent transportation systems. said Nakul Duggal, senior vice president and GM, automotive, Qualcomm Technologies, in a statement. “We share Autotalks’ decades-long experience and commitment to building V2X technologies and products with a focus on solving real-world road user safety challenges. We look forward to working together to deliver global V2X solutions that will help accelerate time to market and enable mass market adoption of this critical security technology.”
“It has been our mission to revolutionize security for the automotive and transportation industry through our V2X solutions,” added Hagai Zyss, CEO of Autotalks. “We are confident that by combining our knowledge and experience, we will not only deliver robust V2X products that will improve transportation efficiency and safety for road users, but also accelerate the widespread adoption of V2X. We look forward to serving the automotive industry together with Qualcomm and bringing the best technologies to market.”