Qualcomm Inc. is acquiring AutoTalks Ltd., a chip startup with technology that enables vehicles to detect obstacles around corners and stop automatically.

The acquisition was announced this morning. Sources told TechCrunch that Qualcomm is paying $350 million to $400 million for AutoTalks, which previously raised $110 million in funding. The Israel-based startup counts Hyundai Motor Co. and Toyota Motor Corp. among its investors.

Automakers are equipping their vehicles with so-called V2X, or vehicle-to-everything, communications technology to improve driver safety. The technology allows two V2X-compatible cars to wirelessly broadcast their respective locations to one another. If the cars detect that they are on a collision course, they can activate their automatic braking software.

AutoTalks sells chips that make it easier for automakers to build V2X features into their vehicles. Currently, V2X is implemented using two main technology standards called C-V2X and DSRC. AutoTalks’ chips support both standards.

C-V2X is based on the LTE technology that smartphones use to connect to carrier networks. It allows vehicles to share data about their locations with one another either via a carrier network or, when there’s no cell tower in reach, directly exchange data via radio signals. The latter feature allows vehicles to share safety data even in the absence of reliable wireless connectivity. 

DSRC, the other networking technology that AutoTalks’ chips support, has a similar purpose. In contrast with C-V2X, it’s not based on LTE but rather Wi-Fi. DSRC allows a car to broadcast its current location, direction and speed to nearby vehicles up to 10 times per second.

AutoTalks says its silicon enables a car to detect obstacles even if they’re around a corner. In the future, the startup envisions vehicles using its technology to not only broadcast their location but also share information about obstacles they detect with other cars.

The company’s chips vary in complexity. Some of the startup’s products, like its SECTON3 modem chip, are designed to be used with an external central processing unit. It also offers the CRATON2, a compute module that includes its own built-in CPU as well as a cybersecurity accelerator that helps reduce the risk of hacking.

The startup doesn’t focus exclusively on the auto sector. Alongside its vehicle chips, it offers a module called ZooZ that can be installed on bicycle’s handlebar to provide V2X-powered safety features. The module alerts the user to potential obstacles and notifies nearby vehicles of the bicycle’s presence.

Qualcomm will integrate AutoTalks’ technology into its Snapdragon Digital Chassis product portfolio. The portfolio includes modem chips that can be used to connect a vehicle to carrier networks. Additionally, Qualcomm offers processors optimized to power vehicle dashboards and infotainment systems.

“We have been investing in V2X research, development and deployment since 2017 and believe that as the automotive market matures, a standalone V2X safety architecture will be needed for enhanced road user safety,” said Nakul Duggal, senior vice president and general manager of Qualcomm’s auto business. 

In today’s acquisition announcement, the company didn’t go into detail about its plans for AutoTalks’ technology. It’s possible Qualcomm intends to embed the technology into its vehicle modem chips.

Such chips often support multiple networking protocols. Qualcomm’s latest smartphone modem, for example, is compatible with 5G as well as LTE and several other wireless standards. The company could similarly equip its vehicle modems with support for the C-V2X and DSRC communication standards that underpin AutoTalks’ vehicle safety features.

In the longer term, Qualcomm could potentially integrate AutoTalks’ silicon into its Snapdragon Drive autonomous driving chips. Automakers will have to address safety concerns before they can roll out fully autonomous vehicles en masse. Using AutoTalks chips, Qualcomm could help its auto industry customers address those concerns sooner.

Integrating a modem chip into a system’s primary processor, such as a vehicle’s Snapdragon Drive autonomous driving module, is a fairly established industry practice. Qualcomm’s high-end mobile processors ship with a built-in 5G modem. 

The acquisition could potentially accelerate the adoption of the C-V2X and DSRC networking standards at the heart of AutoTalks’ chips. Currently, adoption of the two standards is fairly limited. Qualcomm, with its significant resources and extensive list of auto industry customers, could help broaden the use of the technologies as it works to monetize AutoTalks’ products.

The deal is Qualcomm’s second major auto sector acquisition since 2021. Previously, it bought Arriver, which develops software for powering advanced driver assistance systems. Arriver was originally a joint venture between Qualcomm and Veoneer Inc., a vehicle sensor supplier that also sells software.

Photo: Qualcomm