What do cars and mobile phones have to do with each other? We should be asking the California-based semiconductor company Qualcomm Inc (QCOM). Qualcomm is the world's biggest supplier of semiconductors for mobile phones, with over 170 offices in more than 30 countries. The company is now looking to expand into the vehicle industry by offering its chips to power dashboards and infotainment systems.
After striking a deal with General Motors (GM) earlier this year, Qualcomm has announced that it will supply the new Renault (RNO) Mégan E TECH electric vehicle. Qualcomm's chips will power Renault's EV infotainment system using Google (GOOGL) software. Qualcomm is a long-time partner of Google, thanks to its business dealings with Android.
Why it matters
Renault already had to reduce its output by at least 100,000 vehicles this year due to the shortage. The deal with Qualcomm could help Renault address the ongoing semiconductor shortage in the auto industry, and thereby help it recover.
