Qualcomm Technologies has partnered up with Sweden-based auto tech firm to develop a software and a system-on-a-chip platform for driver-assistance systems. The Swedish maker of software, systems and radar for ADAS (Advanced Driver-assistance Systems) said that it has signed a non-binding letter of intent with the California-based Qualcomm and are expecting to finalise a definitive agreement in this year.
Veoneer is a company that competes with companies like Bosch, Aptiv and Intel’s Mobileye and has been hit massively by COVID-19 as the car industry has seen a production halt due the lockdown. The company told Reuters that the partnership with Qualcomm is a big event for Veoneer and he expects the system-on-a-chip platform and integrated software will generate major interest from customers.
More on the auto tech firm Veoneer’s announcement
The software development strategy of Veoneer has been under scrutiny since April when its ended the Zenuity software joint venture with Volvo. In a statement, Veoneer said it expects the integrated platform developed with Qualcomm to be available through automotive Tier 1 suppliers, or directly to the original equipment manufacturers for vehicle production in 2024.
This relationship with Qualcomm will not only strengthen their product portfolio but also broaden their go-to-market opportunities and position, while giving customers more and better ways to access cutting-edge technology, said the statement. The auto tech firm, which supplies car manufacturers like Honda, said last in July that it expected the sales this year to outpace light-vehicle production.
Veoneer share prices soar after deal
On August 28th, Veoneer’s Sweden-listed shares soared by 8.5% by 0825 GMT. Handelsbanken Capital Markets Said in a research note that they believe this collaboration has increased the chances of Veoneer being one of the big players in this market.
Handelsbanken has repeatedly recommended to buy Veoneer’s stocks and says the joint product of Veoneer and Qualcomm will be the #1 competitor to the market-leading Intel-owned Mobileye’s EyeQ SoC system.
For more updates and latest tech news, keep reading iTMunch
Image Courtesy: Veoneer, Qualcomm