LG may consider an exit of the smartphone business. However, the company still rocks in many other segments and keeps breaking records in sales every quarter. Now, the LG Electronics business announced a partnership with US chipmaker Qualcomm Technologies Inc for the development of 5G automotive platforms. According to a senior LG executive, this is a strategic move by LG as it pursues expansion in the emerging markets of automotive technology.
For those unaware, Qualcomm is a leading manufacturer and number one semiconductor supplier in telematics and wireless car connectivity. Apparently, the company aims to deploy what it termed “reliable, connected, intelligent and location-aware next-generation vehicles” with its expanding group of partners. So far, Qualcomm established a partnership with LG, Continental AG, and ZTE Corp.
According to Park Jong-sun, vice president of LG Electronics, stated that LG and Qualcomm Technologies are mobile innovation leaders. Both companies will bring their decades-long research and development experience to the automotive industry. The biggest focus, however, will be in the development of cutting-edge 5G automotive platforms.
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Qualcomm and LG are long time partners in the car segment of the industry. Now, both companies believe that 5G is the way to go to bring a fully connected car platform. According to estimates, up to 75% of all vehicles that will be sold in 2027 will have embedded cellular connectivity. This shows how the 5G technology in the automotive segment will keep expanding in the coming years.
LG and Qualcomm have a long story of partnerships
Back in 2004, Qualcomm and LG worked together to develop telematics technology. In 2017, the duo signed a partnership to collaborate on connected car solutions. Furthermore, in 2019, LG and Qualcomm agreed to strengthen LG’s in-vehicle infotainment system, webOS Auto. Based on this latter partnership, we can say that the companies are just resuming the work taking a ride on the 5G era.
The Korean firm so far is building strategic plans to establish a strong presence in the automotive solutions segment. This is part of a bigger strategy that is bringing good fruits for LG. As aforementioned, the company is collecting good fruits from all its segments except for the smartphone market. Back in December last year, the Korean firm signed a partnership with the Canadian auto parts maker Maga International Inc. The duo will bring electric vehicles and automobile parts.