Qualcomm is acquiring Israeli auto chipmaker Autotalks. What does the purchase mean?

Tech giant Qualcomm is committing to furthering its technologies in the automotive sector. Its latest move is the acquisition of Autotalks, a fabless chipmaker out of Israel that builds semiconductor and system-on-a-chip technology to aid in automotive safety. 

 

Through the acquisition, the US chipmaker said the production-ready, dual-mode, Autotalks standalone safety solutions would be incorporated into Qualcomm Technologies’ expanding Snapdragon Digital Chassis product portfolio. Autotalks chips and vehicle-to-everything (V2X) communication technologies are dedicated to boosting road safety for both traditional and driverless vehicles.

“We have been investing in vehicle-to-everything (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,” Nakul Duggal, senior VP of automotive for Qualcomm Technologie explained in a statement. 

Qualcomm added that connectivity plays a pivotal role in the automotive industry’s digital transformation as it lays the foundation for next-generation software-defined vehicles that will enable new business models while transforming the driving experience with new services, personalization, and, most importantly, safety. 

“Designed to enable vehicles to communicate with one another and with their surrounding environment, V2X communication technologies play an increasingly important role as they become critical sensors for automotive safety systems,” the statement reads. Although the acquisition’s financial terms have yet to be disclosed, sources claim that it’s a US$350-US$400 million deal.

What does Autotalks provide that Qualcomm wants?

Autotalks has been dedicated to V2X communications as a fabless semiconductor company since 2009. The company provides automotive-qualified dual-mode global V2X solutions compatible with multiple V2X standards designed to reduce collisions and improve mobility. 

“We share Autotalks’ decades-long experience and commitment to building V2X technologies and products, focusing 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 safety technology,” Nakul added.

The move to acquire Autotalks is considered a timely one, considering Qualcomm expects the automotive industry to be one of its most significant sources of growth and revenue over the coming years. At CES last year, it unveiled the Snapdragon Ride Vision platform, an “open, scalable and modular” tech that automakers can use to build cars.

Then in late 2022, it said its automotive business pipeline, or its revenue-generating opportunities, had jumped to US$30 billion from the US$10 billion it announced during its previous earnings report. The company also estimates its automotive business revenue to hit US$4 billion by fiscal year 2026. 

It credited the Snapdragon Digital Chassis, its cloud-connected assisted and autonomous driving technologies, for expanding its future business opportunities. In other words, Autotalks’ acquisition could grow Qualcomm’s customer base, and its client offerings, even further.