Whereas there’s been a run of dangerous information from main tier-1
suppliers akin to Schaeffler and
Bosch about sluggish demand from the
automotive sector, system-on-chip (SoC) firms akin to Qualcomm
and Nvidia have been plowing a distinct furrow. Qualcomm, which is
having fun with an EBITDA margin across the 30% mark, in contrast with the 5%
at present typical of main suppliers, has reported sturdy progress in its
automotive income this 12 months and has plans to
strengthen its providing for the sector as per its latest Snapdragon Summit
2024.
On the summit, Qualcomm launched important developments in
automotive semiconductor expertise, with a deal with bettering the
cockpit expertise and advancing driver help methods (ADAS)
by means of modern SoCs. Qualcomm’s Snapdragon Digital Chassis has
advanced with the introduction of the Snapdragon Cockpit Elite and
Snapdragon Journey Elite platforms. Each function the Oryon CPU, now
optimized for automotive security requirements and designed for 3x
quicker CPU efficiency than earlier generations, in keeping with the
firm. These applied sciences purpose to reinforce in-vehicle digital
experiences by integrating superior infotainment with autonomous
driving capabilities on a single chip.
Qualcomm plans to introduce lower-tier variations of those
platforms to broaden their functions, enabling automakers to
develop cost-effective options throughout varied market segments.
The Cockpit Elite and Journey Elite SoCs are anticipated to be out there
to producers beginning in 2025, with early adopters akin to
Mercedes-Benz and Li Auto planning to combine these applied sciences
into their upcoming fashions. The primary autos utilizing these
platforms are projected to enter the market in 2026 in China,
adopted by world releases.
Edge AI and software program virtualization
At Snapdragon Summit 2024, Qualcomm emphasised the advantages of
edge AI over conventional cloud-based options, notably in
phrases of privateness and latency. By processing information regionally throughout the
car, edge AI enhances information safety and ensures that delicate
data stays protected. Current developments in AI fashions,
akin to Llama 3.0, illustrate that edge AI can ship sturdy
efficiency whereas decreasing reminiscence necessities, which can result in
value financial savings for producers.
One other necessary function of Snapdragon’s Elite platform is that
it helps software program virtualization. This functionality permits
automakers to combine and isolate important software program
functionalities, making certain that completely different methods — akin to
infotainment and ADAS — can function independently. This
separation is essential for sustaining information integrity and safety,
particularly with the growing prevalence of over-the-air updates
within the automotive business.
Business collaborations
Qualcomm’s collaboration with Epic Video games to
combine Unreal Engine into its automotive platforms is anticipated
to supply new alternatives for growing cockpit shows. This
partnership permits producers to leverage pre-integrated
capabilities for enhanced design and simulation processes.
Moreover, Qualcomm’s partnership with Google goals to
create a standardized platform for AI-powered cockpit options,
addressing the business’s want for environment friendly software program growth
and enhancing the capabilities of software-defined autos.
Within the automotive area, the corporate is working with Samsung for
superior reminiscence expertise, Pink Hat for
software-defined car platform and LG Power for
superior battery administration system diagnostic options.
Content material enhance in new car launches
At a time when a number of the main chip suppliers akin to Microchip
Know-how, NXP
Semiconductors and STMicroelectronics are
grappling with weakening demand from automotive clients, Qualcomm
has confirmed comparatively resistant to quantity slowdowns as a result of its
ever-increasing content material per car. Throughout Snapdragon Summit 2024,
it highlighted its partnership with OEMs akin to Volvo, BMW, GM and
Nice Wall Motor to advance cockpit and ADAS applied sciences.
Qualcomm’s success within the automotive sector is a part of its
broader diversification technique. The corporate has expanded its
footprint within the automotive market by securing design wins with
main automakers and tier 1 suppliers. This has positioned Qualcomm
as a key participant within the transition towards extra related and
autonomous autos.
Authored By: Rohan Hazarika, Provide Chain &
Know-how, Senior Analysis Analyst, S&P International
Mobility
