Why Qualcomm doesn't want Intel to make its chips
What's the story
Qualcomm's CEO Cristiano Amon has said that Intel's chip production technology is not advanced enough for Qualcomm to use as a supplier. The statement was made during an interview on Bloomberg Television's Bloomberg Tech. Amon said, "Intel is not an option today," but added that they would like it to be one in the future if Intel could improve its manufacturing capabilities to produce more efficient chips.
Current partnerships
Qualcomm to continue relying on TSMC and Samsung
Amon confirmed that Qualcomm will continue to rely on its current suppliers, Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics Co, for chip production. This is in line with the industry's trend of outsourcing production. Despite Intel's efforts to win foundry customers like Qualcomm, the latter is sticking with its existing partnerships for now.
Market diversification
Qualcomm's push into autos
Qualcomm, which primarily earns from selling processors for Android smartphones, is also venturing into the automotive sector. The company has said it can generate $22 billion in revenue from automotive and connected devices by 2029. Qualcomm announced that it has developed a self-driving product for BMW AG's newly unveiled iX3 SUV.
Tech strategy
A careful approach toward automotive sector
Qualcomm has been careful in its approach toward the automotive sector. The company has focused on building a stronghold in chips for infotainment systems in cars. Now, it is using those partnerships to extend its reach into tech that will eventually replace human drivers.