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Qualcomm to acquire Israeli auto-chip maker Autotalks

Published 05/08/2023, 03:03 AM
Updated 05/08/2023, 11:41 AM
© Reuters. FILE PHOTO: A smartphone with a displayed Qualcomm logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
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(Reuters) -Qualcomm Inc said on Monday that it would acquire Israel's Autotalks Ltd, a maker of chips used in crash-prevention technology in vehicles, as the U.S. firm looks to expand its automotive-related business.

The company did not disclose the terms of the deal but said Autotalk's technology would be incorporated into its assisted and autonomous driving product, called Snapdragon Digital Chassis.

Qualcomm (NASDAQ:QCOM) said in September last year that its automotive business "pipeline", or potential future orders, rose by more than $10 billion to $30 billion since its third-quarter results were announced in late July, as automakers increasingly equip their cars with driver-assistance systems.

The company, which has credited the jump to its Snapdragon Digital Chassis product, competes with Intel (NASDAQ:INTC)'s Mobileye Global and Nvidia (NASDAQ:NVDA) Corp for that slice of the market.

© Reuters. FILE PHOTO: A smartphone with a displayed Qualcomm logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo

Revenue from Qualcomm's automotive business rose 20% to $447 million in the second quarter ended March 26.

Autotalks makes dedicated chips used in the vehicle-to-everything (V2X) communications technology for manned and driverless vehicles to improve road safety.

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