Qualcomm acquires NXP to pave the way for the auto market

Although Qualcomm’s acquisition of the NXPS Semiconductor program revealed that the latter intends to increase the acquisition price tag, Qualcomm is still confident that the transaction will be completed by the end of the year, paving the way for Qualcomm to conquer the auto market. Qualcomm put forward US$47 billion to welcome NXP. The amount is astonishingly high. It is not difficult to see that Qualcomm will be able to win, and its greatest motivation is to take this opportunity to enter smart and connected vehicles. Executive Director Steve Mollenkopf recently admitted at the D.Live meeting of the Wall Street Journal (WSJ) that the automotive market is important to Qualcomm. Mollenkopf said that the automotive system and subsystem architecture has undergone major changes, but also become smarter. The irrelevant networking technologies and smart car systems have now been integrated with each other. This is the business opportunity that Qualcomm wants to seize. With the evolution of technology, Qualcomm will also be able to provide solutions in order to achieve a final goal in the automotive market. Mollenkopf anticipates that the subversive effects of automatic vehicles will continue for the next 30 years, which is of equal importance to smart phones. However, self-driving cars are only just starting, and there is still much room for improvement in the interconnection and interconnection of vehicles. For Qualcomm, the boom in self-driving cars came at the right time. Qualcomm faced many challenges in the mobile phone market and was successively fined by the mainland and South Korea. In October, it was also fined by the Taiwan government. Apple (Apple) lodged a complaint with the US federal court that Qualcomm’s authorized charging method was unreasonable. Mollenkopf explained that these disputes originate from the technology charge, and that Qualcomm and Apple still maintain good relations. However, successive lawsuits across the globe have actually caused harm to Qualcomm. Apple even refused to pay mobile phone chip licensing fees, resulting in Qualcomm’s previous quarter’s 40% decline from the same period in 2016. Qualcomm now hopes to find new growth momentum from the automotive market, but Mollenkopf frankly stated that the automotive chips and smart phones or PC chips are very different and there are new challenges. Qualcomm is trying to understand the broader market culture differences. In addition to acquiring NXP, Qualcomm recently announced that it has established a smart car laboratory in China with Chongtexa Software in mainland China for the study of smart cockpits and control systems, user interfaces, and user experience. The goal is to establish a complete Internet of Things (IoT) ecosystem and to extend research and development results to connected cars in the mainland.