Qualcomm Inks $1.04B Automated Driving Chip Supply Deal With Volkswagen: Report

U.S. chipmaker Qualcomm, Inc. QCOM has reportedly landed a long-term supply deal with German automaker Volkswagen AG VWAGY.

German automaker Volkswagen has negotiated a long-term commitment with Qualcomm to source the latter's system-on-chip, specifically developed for automated driving, according to a Handelsblatt report.

Volkswagen will reportedly use the chips across its brands, starting in 2026. The contract, valued at around one billion euros ($1.05 billion), will run through 2031, the report noted.

The development comes as a surprise, as Volkswagen has had a longstanding relationship with Intel Corporation's INTC Mobileye unit, Handelsblatt ewpoerws.

The report also noted that the Volkswagen chip deal comes after a similar long-term automated driving chip contract negotiated by rival German car companies such as Bayerische Motoren Werke AG BMWYY and Mercedes-Benz Group AG DDAIF.

BMW is partnering with Qualcomm, while Mercedes is relying on chip supply from Nvidia Corporation NVDA.

Qualcomm closed Friday's session down 5.74% at $139.69, according to Benzinga Pro data.

Related Link: EXCLUSIVE: Qualcomm CFO Sees 'Limitless' Opportunity Ahead In Cloud Connectivity

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsTechMediaautomakerssemiconductors
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!