Qualcomm's head of Automotive, Robotics and IoT Businesses Nakul Duggal said that the new vehicle technology partnership the semiconductor company announced with Stellantis will allow the automaker to modernize technology across the board and move fast as the automation and self-driving landscape grows. Duggal said that the automotive industry is moving quickly and he sees more intelligent cars becoming out over the next few years.
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What Nakul Duggal said
Written from the verified transcript and checked against it. Every figure links to the moment it was said.
Nakul Duggal, Qualcomm's EVP and GM of Automotive, Industrial, Embedded IoT, and Robotics, discussed the expanded partnership with Stellantis. He said Qualcomm will deploy its digital chassis, including silicon, self-driving software, and connectivity, across all Stellantis platforms starting in model year 2028, covering brands like Chrysler, Fiat, Dodge, Peugeot, and Citroen in all markets outside China. Duggal noted this is a single harmonized architecture, making Qualcomm the dedicated supplier for Stellantis's next generation. He highlighted AI's role in transforming the in-cabin experience and self-driving capabilities. He said the driver being completely removed is far out, but AI entering digital cabins and cars becoming more intelligent will happen within two years, with deployment in the Western world by 2028. He mentioned Qualcomm's automotive business is exiting at $6 billion annualized revenue, growing 25% over six years, and expects similar growth to continue.
Key takeaways
Qualcomm will supply all silicon, self-driving software, and connectivity for Stellantis across all platforms starting model year 2028.
Qualcomm's automotive business is exiting at $6 billion annualized revenue, growing 25% over the last six years.
Duggal expects AI to enter digital cabins and cars to become more intelligent within the next two years, with deployment in the Western world by 2028.
The Stellantis partnership is exclusive, with Qualcomm as the dedicated supplier for this next generation.
1:56... buys a Stellantis after that model year, any vehicle across the Stellantis portfolio, as you mentioned, after that model year, will Snapdragon technology, this technology that you are talking about right now, be included in that vehicle?
3:30In terms of not only kind of the AI or experience that sounds like it's taking it to another level, but you were already involved in kind of mechanics, if you will, or the inner workings with Stellantis. Is that correct?
4:33Is it exclusive, or are there other companies, AI or tech, that are doing similar parts?
6:15Since you have such a good view on what you are calling an embodiment of physical AI, what's a realistic timeframe for you to tell us that we as drivers will be removed completely from the equation when it comes to this technology?
Tell us about this partnership, and I want you to kind of go into exactly what this means by expanding it for those who understand your world, and maybe for those smart investors who don't totally understand it. Break it down for us.
Thank you, Carl. Thank you, Tim. Great to be with you. Yeah, you know, our business in automotive has been on a tear over the last many years. We are going to exit at $6 billion of annualized revenue, which has grown at 25% over the last six years. The partnership with Stellantis is actually one of a kind. We've been building for the digital future of cars for a number of years, and physically, as you know, it is coming into every single vehicle. The digital chassis that we build essentially allows an automaker to be able to modernize all of their vehicles across the board, from connectivity to the in-cabin experience to the driving experience of a vehicle. And this partnership with Antonio at Stellantis is a one of a kind. This essentially means we get to deploy starting in model year '28 across all of their platforms, from Chryslers to Fiats to Dodge to the Peugeot brands, the Citroen brands across every global footprint. The Stellantis vehicles are deployed in every market outside of China. An entire fleet of products. This is a new change in the way Stellantis is developing their vehicles. It's one single architecture that gets homogenized so that you can move fast. You can become a software company, working with partners across the board to be able to bring self-driving capability into every single cabin and, of course, connected vehicles. And, you know, we've been building this for really the entire industry over the last many years, and this is what we're going to do with Stellantis.
So if somebody buys a Stellantis after that model year, any vehicle across the Stellantis portfolio, as you mentioned, after that model year, will Snapdragon technology, this technology that you are talking about right now, be included in that vehicle?
That's right. That's right. So we're already a supplier for them. And this is now going to happen across ADAS, cockpit, and telematics. So what does that mean for the driver experience? You know, you're starting to now see AI essentially come to the fore, especially for platforms like a car, which is a physical platform. It's your daily driver. It's something that you spend a lot of time in. And bringing AI into the cabin experience essentially allows your personal space to be completely transformed. We've been preparing for this with the entire ecosystem. We've been working with this with companies like Google, with, of course, our automotive suppliers and partners and Snapdragon. Cockpits are now AI ready. That means the experience that you will have in your in-car cabin experience will be no different than what you're starting to see on your smartphone. You can have a conversational experience with your car. It shops for you. It sets up appointments, it entertains you. That experience in your car changes the entire way that consumers will engage with the vehicle. And then the same thing extends over to the driving experience. So as you are starting to see technology like FSD get deployed very broadly, this is also something that's part of the partnership that we've built with Stellantis, where we will power their self-driving stacks along with our silicon. And this essentially is a brand new type of product that starts to get deployed starting '28.
Nakul, is it an expansion? So you guys were already involved, right? In terms of not only kind of the AI or experience that sounds like it's taking it to another level, but you were already involved in kind of mechanics, if you will, or the inner workings with Stellantis. Is that correct?
You know, we've been working with both Fiat Chrysler and Peugeot for a number of years. I think this big shift is really as the technology transforms, with AI becoming such a central part of the transformation of the car. This allows us to be able to help Stellantis move to this new architecture and to do this across the board. You know, as you know, the car industry is complex, a lot of different architectures. This is going to be a one of a kind change, because this is one common, harmonized architecture across the entire global fleet of vehicles. So any change that is made brings that experience to every tier of vehicle deployed across any part of the world. And that is what makes this partnership very unique.
