The new battlefield of Qualcomm/Intel and other chip giants - smart cars

When we are still linking Qualcomm, Intel, NVIDIA to computers and mobile phones, these chip giants have already sneaked into the new battlefield - smart cars.

According to research firm IHS, an ordinary new car currently contains 616 chips, and the number of chips in 2013 was only 550. According to the Gartner report, the value of the chip in each car has soared from $250 in 2000 to $350 this year. IDC's research report also shows that in 2015, the entire chip industry's investment in automotive accounts for up to 10%, about 29 billion US dollars.

In the face of such a huge blue ocean, no one is willing or afraid to act immediately. Qualcomm recently acquired Dutch chip maker NXP for $47 billion. After accepting the world's largest auto chip retailer, Qualcomm became a giant in the automotive chip industry overnight.

At present, Qualcomm's revenue on automobiles and other connectable devices accounts for about 8% of total revenue. Qualcomm said that after the completion of the acquisition of NXP, this proportion will be significantly increased to 29%, creating more than 10 billion US dollars in revenue for the company.

The decline of smartphones is the main reason for the transformation of Qualcomm. More than 90% of Qualcomm's revenue comes from smartphone parts technology, but the current growth in this area is less than 2%. On the contrary, the potential growth of the automotive industry is huge. IDC predicts that the average growth rate of automotive chips will reach 7.7% between 2015 and 2020.

In fact, Qualcomm is not the first company to bet on the field of automotive chips. Large companies in the automotive industry have already taken the lead. Ford and BMW have joined forces with Internet technology companies and chip companies to test autopilot systems. In July this year, BMW announced that it has reached a cooperation with Intel to jointly develop and manufacture the unmanned electric vehicle iNext, which is scheduled to be launched in 2021 to replace the 7 Series as the flagship sedan. Intel provides chips that can increase the speed of the vehicle.

The bigger competitor is from Tesla. Elon Musk said last week that all Tesla cars will have autopilot capabilities in the future. Tesla currently uses chips from chip giant NVIDIA. According to Mizuho Securities, cooperation with Tesla may increase Nvidia's revenue by $25 million to $100 million.

As the automotive industry is more eager for autonomous driving functions, auto companies are also investing heavily in chip technology. For example, artificial intelligence algorithms and the meaning of reading different buttons, such demand is growing significantly. But in many ways, car autonomy and algorithms are still in the experimental stage, and there is no general consensus. For example, what is the best way to automate the car? Should the car have a supercomputer and powerful sensing functions to let it think for itself, or do it need only a simple technology based on remote network control to centrally manage traffic? These problems are still unsolved.

But what is certain is that all the monitors, parking sensors and anti-collision warning systems deployed in the future will require more chips to support. The higher the degree of autonomy, the higher the requirements for sensors, electronic brains and information exchange chips. With the maturity and development of electronic technology, component integration has become a historical trend. In the future, more remote functions will be integrated into a single chip, which in the past may require the participation of multiple groups in the supply chain in the industry.

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