Qualcomm Inc. and other chip makers are actively pursuing mergers as cars move into "mobile computers" that drive automatically. But whether this boom in mergers and acquisitions will help cars become more intelligent at a faster rate is hard to come to a conclusion.

Qualcomm's $31 billion acquisition of NXP Semiconductors on Thursday (November 3) highlights the boom, the largest acquisition in the history of the semiconductor industry and the second-largest technology company M&A deal in history.

NXP is the largest supplier of automotive chips and is attractive to Qualcomm because Qualcomm currently sells chips to the slowing smartphone market, but is now expanding its business.

Market research firm IHS Markit estimates that there are currently 616 chips in a regular new car, compared to 550 in 2013. According to Gartner Inc., the value of the chips used in each car this year has soared to about $350, compared to about $250 in 2000.

Qualcomm is not the first company to re-invest in the automotive industry. As auto companies implement differentiated competition by offering various functions such as hands-free calling and Internet radio, the automotive industry is increasingly attractive to chip makers. This kind of competition is getting more and more intense, because auto companies are perfecting the autopilot function, which requires more sophisticated and expensive semiconductor products.

BMW, Ford and other auto companies have said they will be driving self-driving cars in the next few years, and a semi-autonomous car from Tesla Motors Inc is on the road. travel.

It is reported that last week, Tesla began to ship with new hardware, the hardware can be controlled by software in the future, used to open the fully automatic driving mode. However, the relevant software must be verified and approved by the regulatory body. Tesla Chief Executive Elon Musk plans to show the process of driving across the US in a fully automated driving mode by the end of next year.

In addition, in July of this year, Analog Devices announced the acquisition of Linear Technology Corp. in cash and stock, valued at $14.8 billion.

ADI said the automotive industry's application was a key factor in the company's move. NXP reached a deal last year to acquire Freescale Semiconductor, a transaction worth nearly $12 billion, making it the largest supplier of automotive chips.

At the same time, chipmakers hope to combine a number of expertise through mergers and acquisitions to help them increase their influence in shaping the future of the car.

ADI Chief Executive Vincent Roche said in an interview in early October that this means that chip company executives and automotive industry decision makers will have a more direct discussion, which should speed up innovation.

Qualcomm Chief Executive Steve Mollenkopf said that the company’s executives regularly flew around the world to communicate with executives at top smartphone manufacturers. Although Qualcomm also sells wireless chips for automobiles, the company currently does not have this prestige in the automotive industry.

NXP has greater influence. According to Mollenkopf, this is a trait of the NXP team. It is understood that the company's chief executive Rick Clemmer has previously discussed how to incorporate Freescale's technology to enable its company to develop multi-chip modules and add new features to the car.

Moreover, Clemmer also said recently that NXP needs the same kind of expertise as Qualcomm's deep learning, especially the need to improve computing power.

Gartner Inc. analyst Jim Hines agrees that Qualcomm may enhance its strategic position through transactions with automakers.

At the same time, such mergers often increase the chipmaker's advantage in negotiating prices with automakers.

Mollenkopf said that in addition to automotive chips, NXP is more attractive. The company has a large range of products sold to more than 2 million customers, and there are also much larger options in the distribution channel to help Qualcomm find a wider range of customers for its technology.

At the same time, he pointed out that both companies will promote the development of the Internet of Things, and the technology in the automotive industry and the Internet of Things will also undergo tremendous changes.

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