What is the story about?
What's Happening?
Qualcomm is localizing its automotive module production in India, shifting from traditional manufacturing hubs like Taiwan, China, and Korea. This strategic move supports its Tier-1 ecosystem partners in establishing manufacturing operations in India, aligning with the 'Make in India' initiative. Qualcomm's focus is on designing chipsets for electric vehicles, partnering with major Indian OEMs such as Tata Motors and Hyundai. The Snapdragon Digital Chassis platform will be featured in approximately a dozen vehicles by 2026, enhancing telematics, infotainment, and ADAS solutions.
Why It's Important?
Localizing production in India is a significant step for Qualcomm, potentially increasing its automotive segment revenue, which currently accounts for about 10% of its global revenue. This initiative is expected to provide a competitive edge by catering to the growing demand for locally designed and manufactured products. It also strengthens India's role in the global automotive supply chain, contributing to economic growth and technological advancement in the region.
What's Next?
Qualcomm aims to double its automotive segment revenue to around $8 billion by 2029. The localization effort is expected to create new opportunities within Qualcomm's supply chain and enhance its market presence in India. The company will continue to develop partnerships with Indian OEMs and expand its product offerings to meet the evolving needs of the automotive sector.
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