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Sure, there is going to be a lot of new silicon content in a car(but less, or much less cars ), but most of that silicon content would be in new areas - AI and
by petra 10y ago
Sure, there is going to be a lot of new silicon content in a car(but less, or much less cars ), but most of that silicon content would be in new areas - AI and machine learning, LIDAR, Radar ? , Vision - areas where nxp doesn't have any advantage, on the opposite - where startups and other companies like Google and Nvidia beat it.
To get those capabilities, wouldn't it be better for Quallcom to invest in R&D or buy startups ?
Another skill NXP has(via Freescale), is knowing how to build failure proof chips(via redundancy, etc). But my guess is that isn't that terribly hard skill to ackuire, and if not ackuire , there are already probably 3 companies with that skill(TI, NXP/Freescle, Renesas), and at least on startup - so enough people to partner or hire. And in any case , that knowledge is just the start , applying it to the complexities of AI is the real challenge.
And the third skill is of course - access to the automotive sales channel, possibilities of cross selling , etc. But will that be a big issue for the new tech ?
- arcanus 10y ago> failure proof chips(via redundancy, etc). But my guess is that isn't that terribly hard skill to ackuire I would not assume that. Fault tolerance is non-trivial. Furthermore don't underestimate the value of IP in this space.
- bisrig 10y agoI would be careful of trivializing the last point that you made. Things like extremely long design cycles, environmental requirements, expectations of value-add engineering services, product lifetimes etc. make the auto market different in significant ways from consumer electronics. If you're a company like NXP, these are core competencies. If you are oriented towards consumer market, these are annoyances as best and serious cultural challenges at worst.
- user5994461 10y agoPlease... the automotive market is a joke. They have the experience and the product lines vetted for military and aerospace. That's a different league entirely.