Message 33088283
Qualcomm, Inc. (QCOM) Presents at Barclays Global Technology, Media and Telecommunications Broker Conference Call - (Transcript)
Cristiano Amon is back with us. He's the President of Qualcomm. Thanks for joining again.
Question-and-Answer Session
Q - Blayne Curtis
Cristiano, maybe I was saying it from a -- the way to start this off, I always like to start with a broader question. And you guys recently broke out in QCT, the subsegments. And I think it's quite interesting as you look, handset modems are only 2/3 of that bucket, you're in a whole other 1/3 that's growing quite quickly. I was curious maybe you can just talk about the broadening of the QCT business. What has happened and kind of where you see it going in the future?
Cristiano Amon
Very good. Blayne, good to see you. Very happy to be here and participating. It's a great question. We have always said in our company that in -- remember, you go back a couple of years, Qualcomm has been probably the most focused company, just focused on mobile technology. But the scale of mobile and the potential of disruption in other industries, I was there. And as mobile started to disrupt, other industries started to grow into the same direction.
And we're a much more diversified company right now. We have -- what is interesting is we have done some very important technology acquisitions. I pointed to the TDK EPCOS as one of them. But we were able to develop organically, was augmented by technology acquisitions, the ability to develop the engine to diversify QCT. And when we look at the company going forward, it's really more about generating growth based on our mobile assets in a number of different industries. Automotive, it was the first natural, I think, expansion with the 2 transformations in place: one, connected car; other one, changing the electronics. People are driving and looking at their phone. That points to there's more technology in the phone than they had in the infotainment of the car, so that's a great opportunity for disruption right there.
And then we went into a natural extension, which is complexity of 5G creates differentiation opportunities in the front end. And the IoT is still a very, I think, large SAM, which were very -- at the beginning, the disclosure show in that category is already in excess of $3 billion. And we're very optimistic about that. And that's how we should think about Qualcomm going forward, a significant expansion of the semiconductor business.
Blayne Curtis
I do want to talk -- I mean, we'll obviously get to mobile, but just kind of finishing on some of those other segments. Auto, obviously, there's modem attached, but then there's also the infotainment and then you started working on ADAS as well. So maybe just walk you through a couple of drivers within the auto segment. Where is it today? And what do you have in front of you?
Cristiano Amon
Very good. And maybe I'll answer the question by saying now and into the future. So now we have been very focused. We updated our pipeline of $8 billion now in contracted solutions across 2 main drivers, which is basically the C box, where there's connectivity. And once there's connectivity, there's the RF front end attached and also there's Wi-Fi in addition to cellular. That is -- it's growing very, very fast. I think I can probably predict that going forward for this industry, all new models are going to be connected.
And then the second one is what we call the digital cockpit transformation. So silicon that goes into the dashboard goes into the infotainment, rear seat entertainment, smart mirrors and heads-up display. And as the car gets transformed into electronics, electronics is now the first design element when they think about the interior design of the car. So that is really driving that pipeline.
Going into the future, we're expanding in 2 areas. One, it's a Cellular V2X. And I like -- personally, I like the technology. We had a major accomplishment this year, which is harmonization of the 5.9 gigahertz across all countries and standardization of this technology. Now we need to get it to deployment phase. But then we can connect car to car, car to infrastructure and then car to phone, and which kind of has some synergies with the technology road map of the mobile side.
And it's easy to understand the power of this technology. Just look at -- think about navigation systems, and you see a map and you see your car moving. Think about now populate that map of every other car in the road and direction of traffic. So it's a very powerful -- it has the potential. I don't want to make set expectations, but it has the potential to be as significant for safety as ABS and airbags. And I think we see this as a growth opportunity.
And the last one is ADAS and autonomy. And we did announced that we have one engagement with autonomy, and we see that as an expansion opportunity for our auto business.
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