Qualcomm and BMW Collaborate on Autonomous Driving Tech; CEO Hints at Future Partnerships

Qualcomm’s Snapdragon Ride Pilot automated driving system, co-developed with BMW, is poised to generate significant interest from other automakers seeking to license the technology, according to Qualcomm CEO Cristiano Amon. This highlights Qualcomm’s strategic diversification from its core smartphone chip business into high-growth sectors like automotive.

The announcement of the collaboration with BMW, a cornerstone in the automotive industry, validates Qualcomm’s technology and provides a real-world application to showcase its capabilities. The Snapdragon Ride Pilot system offers Level 2+ autonomy, enabling hands-free driving and lane-changing on designated roads but falls short of full driverless operation.

Scheduled to debut on the BMW iX3 and expand across 100 countries by 2026, the system’s adoption by BMW lends credibility and visibility. Amon emphasized in a recent interview that although the system was developed in conjunction with BMW, its design is intended for licensing to multiple OEMs. “Everybody’s been waiting for this moment…to see how it performs in the street,” Amon stated, highlighting the importance of the iX3 launch in demonstrating the technology’s potential.

“I think what I expect to happen… is going to ignite a domino effect” of other carmakers wanting to use the technology, Amon said, expressing confidence that positive real-world performance reviews will spur broader adoption. Qualcomm has reportedly engaged in discussions with other automakers but has not yet announced additional partnerships, signaling ongoing strategic developments in the automotive space.

“Everybody’s been waiting for this moment, including ourselves, because people wanted to see how it performs in the street,” Amon said, adding that the BMW iX3 will launch with the automated driving technology in 60 countries. This will allow the system to be demonstrated, he said.

“I think what I expect to happen, as OEMs [Original Equipment Manufacturers] see how it compares and how competitive it is, that’s going to ignite a domino effect” of other carmakers wanting to use the technology, Amon said.

The Qualcomm CEO said the company had “made a lot of progress” in talks with other carmakers, but is “not yet ready to announce” any partnerships yet.

While Qualcomm’s primary revenue stream remains smartphone chips for companies like Samsung and Xiaomi, CEO Amon has strategically diversified into sectors including PC chips, data center semiconductors, and automotive. The company sees significant potential in the automotive sector, exemplified by its collaboration with BMW.

The auto business generated nearly $1 billion in revenue during the June quarter, exhibiting a 21% year-over-year growth rate. Qualcomm projects automotive revenue to reach $8 billion by fiscal year 2029. This ambitious target reflects the company’s commitment to becoming a key player in the automotive technology landscape.

Qualcomm is developing technologies for various vehicle systems, including in-car entertainment. Recently, they announced a collaboration with Google Cloud enabling car manufacturers to develop customized digital assistants. According to Murtuza Ali, senior analyst at Counterpoint Research, “[Qualcomm] are building a whole ecosystem led by software…The main thing is they are a fully integrated solution provider for autonomy, which is what they were lacking.”

The market for autonomous driving technology is increasingly competitive, with traditional automotive companies, especially those in Europe, facing challenges compared to rivals in China and Silicon Valley. Qualcomm’s comprehensive approach and partnerships strategically position the company to potentially capture a significant share of this growing market. The company’s move into autos is more than just component sales; it’s about providing a comprehensive, integrated platform for the future of mobility. Qualcomm is betting that its expertise in mobile technology can be successfully translated to the evolving needs of the automotive industry.