QUALCOMM

Company will supply chips to Volkswagen

Chip shortages reduced the volume of car production Volkswagen was concerned about, so the company had to give way to Toyota Motor Corporation. However, the European giant is actively looking for ways to optimize its business, relying on electric vehicles and autopilot. In the latter case, the American company Qualcomm could become a key partner of Volkswagen.

Best known for its telecommunications solutions, Qualcomm has made no secret of its ambitions to enter the automotive market, and here a big contract with a company like Volkswagen can be a big help in realizing such plans. Volkswagen CEO Herbert Diess visited Qualcomm's San Diego headquarters in mid-April and the companies agreed to a long-term partnership, Reuters reported, citing a publication in Handelsblatt. It is assumed that Qualcomm will supply highly integrated chips for the German company's machines from 2026, which will form the basis of active driver assistance systems.

The first phase of the contract implies cooperation between the two companies until 2031, and the amount that Volkswagen will pay as a result of this phase of cooperation will reach one billion euros. We emphasize that until now Volkswagen has been looking for long-term partners in the direction of automating transport management. It was going to develop software together with Bosch, the first experiments showed the German giant's interest in the components of Mobileye, an Israeli company that Intel intends to bring to an IPO in the near future. Volkswagen does not refuse to use chips made by Samsung LSI.

Image source: Qualcomm Technologies