Qualcomm, the American telecommunications and semiconductor company, has announced its acquisition of Autotalks, a fabless chipmaker from Israel. The startup builds system-on-a-chip and semiconductor technology that improves automotive safety. Qualcomm is reportedly paying between $350 million and $400 million for Autotalks.
Autotalks’ technology is used in sensors that enable vehicles and drivers to detect hazards on the road, such as oncoming vehicles in blind spots. It also communicates with other vehicles using compatible technology to improve responsiveness. The plan for Qualcomm is to integrate Autotalks’ vehicle-to-everything (V2X) communication technology into its Snapdragon Digital Chassis portfolio, which is focused on mobility.
Autotalks has raised $110 million since its founding in 2009, with Samsung, Hyundai, Toyota, Gemini Israel, and Magma Venture Partners among its many backers. The acquisition by Qualcomm is not a surprise, given the importance of safety in advanced automotive technology. As a primary feature and solution that carmakers are likely to invest in for newer car models, safety technology is a lucrative opportunity in the building of autonomous and driver-assisted systems.
Qualcomm has been investing in V2X research, development, and deployment since 2017, and the Autotalks acquisition is a logical next step to beef up the company’s capabilities and product range in this area. Qualcomm’s automotive business has picked up momentum, with customers including VW, General Motors, Mercedes-Benz, Cadillac, Honda, and Stellantis. Its QCT division saw automotive revenue of $975 million in FY21 and $1.3 billion in FY22.
Nakul Duggal, senior vice president & GM, automotive, Qualcomm Technologies, said in a statement, “We share Autotalks’ decades-long experience and commitment to building V2X technologies and products with a focus on solving real-world road user safety challenges. We look forward to working together to deliver global V2X solutions that will help accelerate time-to-market and enable mass market adoption of this very important safety technology.”
Hagai Zyss, CEO of Autotalks, added, “We are confident that by combining our knowledge and expertise, we will not only deliver strong V2X products that will enhance transportation efficiency and safety for road users but will accelerate widespread adoption of V2X. We look forward to serving the auto industry together with Qualcomm and to bring the best technologies to market.”
