QCOM CC: Auto another NBT.........................................................................................
"And the reason is the traditional semiconductor suppliers into the automobile space tend not to have the low-power high-performance computing."
IoE and Auto guys are flogging lagging edge stuff.
Leading edge guys will wrest it away from them.
Just ask TI with OMAP CPU.
So the quality premium is appreciated in the automobile space. Now we've been growing our business in two areas recently and seeing success. One is in the infotainment area. So essentially, what we did was we took our computing success, so our application processor assets from the handset space. And we've transitioned that over into the automobile space, and we're getting wins in the infotainment area, which we're very pleased about. You'll start to see even more those come out here over the next couple of years, but the design pipeline and we're quite pleased with. And the reason is the traditional semiconductor suppliers into the automobile space tend not to have the low-power high-performance computing.
So they don't have the CPU or the GPU assets to be competitive, and that's why you tend to see some of the cellular guys doing well there. So that's working. We also did an acquisition of CSR a little while ago, and that's actually helped us in the audio and Bluetooth space in the car. And so we built a set of assets with connectivity and I would say high-performance low-power computing to set up into this transition. Now where the car is going, we think, is quite advantageous for someone coming in with our set of core competencies, which is the – what's happening in the car is there's this big change of architecture in the car. And there's a lot of people who have thrown their hat into the ring about, Hey, I want to control how the car is going to be architected.
And what Qualcomm is doing is essentially saying, I want to get all the pieces that allow me to be a good partner to whomever wins that debate. And so we bring in the connectivity and the low-power computing. I'm sure you'll ask, NXP brings in a lot of the other car pieces, a tremendous portfolio from Ethernet, secure Ethernet to all of the, just the tremendous set of assets.
Incidentally, they don't have the set of assets that we bring. And so we think we'll be uniquely positioned in almost every subsystem in the car at the time when this architecture debate occurs, and so we're quite pleased with that. You'll see more from us once the deal closes on that