Qualcomm unveils driverless tech with BMW, sees 'domino effect' of customers

Qualcomm's innovative self-driving technology, developed in collaboration with BMW, is expected to create a ripple effect among automakers eager to license this cutting-edge system. The CEO of Qualcomm, a leading player in the smartphone chip industry, shared insights with CNBC about the company's strategic expansion into the automotive sector, which is one of its fastest-growing divisions. Last week, Qualcomm and the renowned German automaker BMW introduced the Snapdragon Ride Pilot Automated Driving System. This advanced driver-assist technology enables hands-free driving on designated roads and facilitates lane changes, although it does not allow for complete driverless operation. The system is set to debut in the new BMW iX3 and is slated for availability in 100 countries by 2026. While this technology was specifically developed with BMW, CEO Cristiano Amon emphasized its potential for licensing to other manufacturers. "Everyone has been anticipating this moment, including us, as there has been a demand to see how it performs on the roads," Amon stated. The BMW iX3 is expected to launch with this automated driving technology in 60 countries, providing a platform to showcase the system's capabilities. Amon expressed confidence that as original equipment manufacturers (OEMs) witness the performance and competitiveness of Qualcomm's technology, it will ignite a 'domino effect' that encourages more carmakers to adopt the system. Although Qualcomm has made significant progress in discussions with other auto manufacturers, Amon noted that the company is not yet ready to disclose any partnerships. Traditionally, Qualcomm's primary revenue source has been the chips that power smartphones for major brands like Samsung and Xiaomi. However, Amon is steering the company toward diversification, particularly into the automotive sector, which generated nearly $1 billion in revenue during the June quarter, showing a 21% year-on-year growth. Qualcomm anticipates that automotive revenue will surge to $8 billion by its fiscal year 2029. To support this ambitious goal, Qualcomm is designing technology for various vehicle components. Its chips are also capable of powering in-car entertainment systems. Recently, the company announced a partnership with Google Cloud to assist automakers in developing their own digital assistants. Senior analyst Murtuza Ali from Counterpoint Research pointed out, "Qualcomm is creating a comprehensive ecosystem driven by software, effectively positioning itself as a fully integrated solution provider for autonomous driving—something they previously lacked." As the race for autonomous driving technology heats up, traditional car manufacturers, especially those in Europe, are perceived to be lagging behind their competitors from China.