Qualcomm has put $ 4.6 billion on the table to take over Swedish auto supplier Veoneer. The offer made official Thursday, August 5, 2021 surpasses that of the Canadian equipment manufacturer Magna International by 18.4%.
Qualcomm eyeing the auto industry
For Magna International, the gain is obvious: to strengthen itself against competitors such as Bosch, Aptiv or Continental. But for Qualcomm also this acquisition makes sense since it is in line with its growth and its diversification strategy. While the company is known for its telecommunications solutions, it also supplies chips for the automotive industry in the connectivity and digital interior segments.
Last year, Qualcomm took it a step further by showing its ambitions in advanced driver assistance systems (ADAS) and autonomous driving. The American has launched an offer called Snapdragon Ride Platform comprising a System-on-Chip (SoC), an accelerator, and a software stack. The offer, which initially focuses on SAE level 2+ functionalities, is designed to be able to evolve up to level 4+.
A booming ADAS market
ADAS are booming, whether they are anti-collision systems, autonomous parking or lane keeping. Many of these systems require collecting data using cameras and analyzing it in real time in order to interpret the situation in a specific environment and make the right decision. Qualcomm and Veoneer signed a collaboration agreement earlier in the year to develop software and a chip for driver assistance systems, as Reuters recalls.
“As the automotive industry continues to transform, it is increasingly important for automakers to have a partner who develops horizontal platforms that drive innovation and enable competition., commented Cristiano Amon, President and CEO of Qualcomm. This acquisition offering brings together our cutting-edge automotive solutions with Veoneer’s assisted driving systems to provide a competitive and open ADAS platform for automotive manufacturers and tier 1 suppliers on a large scale. ”