May 8 (Portal) – Chip designer Qualcomm Inc (QCOM.O) said on Monday it would buy Israel’s Autotalks Ltd, which makes chips used in vehicle accident prevention technology, as the US company deepens its auto business want.
With the rise of electric vehicles and automatic functions in cars, the number of chips used by automakers is increasing rapidly, making the automotive market a key growth area for chipmakers.
Autotalks manufactures dedicated chips used in Vehicle-to-Everything (V2X) communication technology for manned and driverless vehicles to improve road safety.
“We’ve been investing in V2X research, development and deployment since 2017 and believe that as the automotive market matures, there will be a need for a distinct V2X safety architecture for improved road user safety and intelligent transportation systems,” said Nakul Duggal, Senior Vice – President – Automotive, Qualcomm Technologies said in a statement.
Qualcomm said last year that its auto business “pipeline” had grown to $30 billion, more than $10 billion since an announcement in late July.
The company credited the jump to its Snapdragon Digital Chassis product, which is used by automakers and their suppliers. The Snapdragon Digital Chassis can provide assisted and autonomous driving technology, as well as in-car infotainment and cloud connectivity.
Qualcomm said Monday it would integrate Autotalks’ solutions into its Snapdragon Digital Chassis product portfolio, but didn’t elaborate on the finances of the deal.
The acquisition will be made through the Qualcomm Technologies unit, Qualcomm added.
Reporting by Sheena K Thomas and Shubham Kalia in Bengaluru, Stephen Nellis in San Francisco; Edited by Rashmi Aich
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