Qualcomm, a leading technology company, has agreed to acquire Autotalks, an Israeli fabless chipmaker, for a deal worth $350 to $400 million. Autotalks specializes in designing chips and V2X communication technologies, which aim to enhance road safety for both autonomous and regular vehicles. Qualcomm has announced that Autotalks' "production-ready, dual mode, standalone safety solutions" will be incorporated into the Snapdragon Digital Chassis, which is a set of cloud-connected autonomous driving technologies.
Nakul Duggal, Senior VP of Automotive for Qualcomm Technologies, said that the company had been investing in V2X research and development since 2017 and expects a standalone V2X safety architecture to be necessary for improved road safety as the automotive market matures. Duggal also noted that Qualcomm shares Autotalks' commitment to building V2X technologies and products with a focus on addressing real-world road safety issues.
For manufacturers of driver-assisted and autonomous vehicles, assuring people that their technologies are safe is essential for winning customer trust. They may need to offer safety features that can alleviate people's concerns to stay ahead of their competitors since many people remain wary of self-driving cars.
Qualcomm foresees the automotive industry as a significant source of growth and revenue in the coming years. The company expects its automotive business pipeline to reach $30 billion, and its revenue-generating opportunities to rise from $10 billion to $4 billion by 2026. The acquisition of Autotalks could help the company expand its customer base and offerings even further.
Autotalks' chips are used in V2X communications technology for both driverless and manned vehicles to enhance road safety. Qualcomm aims to incorporate Autotalks' technology into its Snapdragon Digital Chassis, its set of cloud-connected autonomous driving technologies. Revenue from Qualcomm's automotive business increased by 20% to $447 million in the second quarter ended on March 26. The company competes with other major technology players such as Intel's Mobileye Global and Nvidia Corp in the market.