Qualcomm announced today that it is acquiring Autotalks, an Israeli fabless chipmaker that develops semiconductor and system-on-a-chip technology to improve automotive safety. Qualcomm is paying between $350 million and $400 million for the startup.
Autotalks’ sensors identify road dangers like incoming vehicles in a driver’s blind zone and communicate with other compatible vehicles to increase response. Qualcomm will incorporate Autotalks’ V2X (vehicle-to-everything) connectivity innovation into its mobility-focused Snapdragon Digital Chassis line.
A source close to the arrangement said the acquisition is $350-$400 million. Qualcomm was approached for comment.
Pitchbook reports $110 million raised by 2009-founded Autotalks. Samsung, Hyundai, Toyota, Gemini Israel, and Magma Venture Partners were among its strategic and financial investors.
Qualcomm has attracted VW, General Motors, Mercedes-Benz, Cadillac, Honda, and Stellantis as automotive clients. It claimed a $30 billion automobile “design-win pipeline” in September last year, but that’s a vague idea. QCT, the primary CDMA business, including mobile and wireless chips and associated tech, with automotive revenue of $975 million in FY21 and $1.3 billion in FY22.
Qualcomm acquiring Autotalks is hardly surprising. Safety is a major concern and a profitable opportunity in developing autonomous and driver-assisted systems. Moreover, carmakers will most likely invest in it as a customer-preferred feature and solution despite longer timetables for completely autonomous systems. As a result, Qualcomm should expand its skills and product line in this area.
“We have been investing in V2X research, development, and deployment since 2017 and believe that as the automotive market matures, a standalone V2X safety architecture will be needed for enhanced road user safety, as well as smart transportation systems,” said Qualcomm Technologies senior vice president & GM, automotive, Nakul Duggal. “We share Autotalks’ decades-long experience and commitment to building V2X technologies and products to solve real-world road user safety challenges. We look forward to collaborating on worldwide V2X solutions to expedite time-to-market and allow broad market adoption of this vital safety technology.”
“Our V2X solutions have revolutionized safety for the transportation and automotive industry,” said Autotalks CEO Hagai Zyss. We are convinced that combining our experience and skills can produce excellent V2X solutions to improve transportation efficiency and road user safety and accelerate V2X adoption. We look forward to supporting the car sector with Qualcomm and introducing the greatest technologies.”
