Intel Takes On Qualcomm And Nvidia With Its Foray Into AI-Equipped Automotive Chips

On Tuesday, Intel Corporation INTC announced its entry into the automotive semiconductor market with the launch of AI-equipped chips for cars. The move will see the tech giant competing with the likes of Qualcomm Inc QCOM and Nvidia Corp NVDA.

What Happened: Intel plans to release automotive versions of its latest AI-enabled chips, a direct challenge to its competitors’ dominance in the semiconductor market for future vehicle processors, Reuters reported on Wednesday.

Additionally, the company announced its acquisition of Silicon Mobility, a French startup specializing in system-on-a-chip technology and software for electric vehicle motors and onboard charging systems. The purchase amount was not disclosed.

Jack Weast, Intel’s automotive business chief, disclosed that Chinese automaker Zeekr would be the first to utilize Intel’s AI system-on-a-chip to create an “enhanced living room experience” in vehicles.

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Intel’s new automotive system-on-a-chip products are designed to meet the durability and performance requirements of vehicles, adapting the company’s recently launched AI PC technology. The company has supplied chips for infotainment systems in 50 million vehicles. Still, it has been overshadowed by Nvidia and Qualcomm in the growing market for powerful semiconductors used in automated driving technology, upgradable vehicle system software, and complex dashboard displays.

Why It Matters: The global automotive semiconductor market is projected to reach $89.18 billion by 2028, driven by the increasing demand for advanced electronics in vehicles.

Intel’s latest move into this competitive market follows its recent collaboration with DigitalBridge Group Inc. DBRG to establish Articul8 AI Inc., which provides enterprise customers with a comprehensive and secure generative artificial intelligence (GenAI) software platform.

This development also comes amid a backdrop of significant technological advancements in the automotive industry, such as Sony Group’s electric Afeela car, which was driven onstage using a PlayStation 5 DualSense controller.

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