SAN FRANCISCO -- Qualcomm will supply chips to power in-car infotainment systems in Mercedes-Benz and BMW vehicles.
The chipmaker will supply BMW with chips that will help power voice commands inside the car, the company said in a statement on Tuesday.
It also said it will supply chips for the next version of the Mercedes E-Class models, which will be available in the U.S. in 2024.
Qualcomm is the leading supplier of the chips used in smartphones, a market that has slumped over the past year.
But the company is also working with automakers to power various functions in vehicles, from infotainment systems to advanced driver assistance systems, and its automotive revenue grew 13 percent in its most recent quarter despite its smartphone outlook falling short of analyst estimates.
The company expects to have $4 billion in revenue from the automotive sector by 2026, rising to $9 billion by the end of the decade, CEO Cristiano Amon said in an interview on the sidelines of the Munich auto show.
The U.S. chip designer had announced in late 2022 its "pipeline" in the automotive business was $30 billion, thanks to its Snapdragon Digital Chassis product used by car makers and their suppliers for assisted and autonomous driving technology, as well as in-car infotainment and cloud connectivity.
"One of the things we are very focused on the company is to find new areas for growth... automotive is one of those areas," Amon said.
Asked about the upcoming IPO of Britain-based Arm Holdings, the chip designer owned by SoftBank Group, Amon said: "We are not necessarily participating in the IPO, but we believe that Arm plays an important role in the ecosystem. We want to see an independent Arm."