(Reuters) – Chip maker Qualcomm Inc (QCOM.O) said on Monday it would buy Autotalks Ltd, an Israeli company that makes chips used in technology aimed at preventing car accidents, as the US company looks to deepen its auto business.
With the increase in electric vehicles and automatic features in cars, the number of chips used by automakers is increasing, making the automotive market a major growth area for chipmakers.
Autotalks manufactures custom chips used in vehicle-to-everything (V2X) communications technology for manned vehicles and drivers to improve road safety.
Nacol Dougal, senior vice president of automotive, Qualcomm Technologies, said in a statement.
Qualcomm said last year that its auto business “pipeline” had risen to $30 billion, up more than $10 billion since an announcement in late July.
The company credited the jump to its Snapdragon digital product, which is used by automakers and their suppliers. Snapdragon’s digital architecture can provide assistive and autonomous driving technology, as well as in-vehicle infotainment and cloud connectivity.
Qualcomm said Monday it would integrate Autotalks solutions into its Snapdragon Digital Chaisher product portfolio, but did not elaborate on the financial details of the deal.
Qualcomm added that the acquisition will be made through its Qualcomm Technologies unit.
Additional reporting by Sheena K. Thomas and Shubham Kalia in Bengaluru and Stephen Nelis in San Francisco; Edited by Rashmi Aish
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