San Francisco, May 9: On Monday, Qualcomm, the leading chipmaker, declared that it has agreed to acquire Autotalks, an Israeli fabless semiconductor company that produces cutting-edge chipsets and system-on-a-chip (SoC) technology to bolster automotive safety.
The agreement between the two companies is final, though the financial details have yet to be disclosed.
Autotalks' SoC technology is created to assist vehicles in communicating with each other, as well as with other road infrastructure, in order to improve safety and prevent accidents. The technology is based on dedicated short-range communication (DSRC) and cellular vehicle-to-everything (C-V2X) standards, which enable cars to communicate with one another and the surrounding infrastructure, including traffic lights, traffic management centers, and other vehicles.
By acquiring Autotalks, Qualcomm will strengthen its position in the automotive sector and accelerate the development of its automotive chipset solutions, according to Cristiano Amon, president of Qualcomm. The acquisition also expands Qualcomm's product portfolio and intellectual property, as well as deepens its ties with automotive suppliers and manufacturers.
The acquisition also marks Qualcomm's latest move in its efforts to capitalize on the growing demand for connected cars, which are expected to account for more than 75% of new vehicle sales by 2025, according to market research firm Gartner.
In a statement, Autotalks' CEO, Hagai Zyss, expressed his pleasure with the agreement, stating that Qualcomm's extensive resources and experience in the wireless and automotive sectors would assist Autotalks in achieving its goal of improving road safety.
The acquisition, which is subject to regulatory approval, is expected to close in the second half of this year. Once the transaction is completed, Autotalks will operate as a wholly-owned subsidiary of Qualcomm.