>> DESPITE SOME NEWS COMING OUT
OF THE AUTO INVESTOR DAY, THE
WHICH I AM MAKER DOWN ABOUT --
CHIP MAKER DOWN 2.25% AT THIS
MOMENT.
RIVALS NVIDIA AND INTEL HIT 52
WEEK LOWS AND QUALCOMM HOLDING
ABOVE THAT.
CEO CRISTIANO AMON SAYING ITS
DESIGN WINDPIPE LINE CLIMBED TO
$30 BILLION, A SURGE FROM THE
$19 BILLION AT END OF
JUNE-QUARTER.
DESIGN WIND TYPICALLY MEANS THE
COMPANY’S CHIPS WILL BE USED IN
A WAY THAT RESULT IN LARGE SALES
VOLUMES.
WE’RE TALKING ABOUT THE AUTO
INDUSTRY CHIPS.
ADDITIONALLY, QUALCOMM ANNOUNCED
A DEAL WITH MERCEDES BENZ AS THE
AUTO INDUSTRY SNAPS UP THE
COMPANY’S SNAP DRAGON DIGITAL
CHASSI PLATFORM AND PUT THE
BRAKES ON QUALCOMM’S GROWTH.
THE CEO CRISTIANO AMON IS
JOINING ME NOW.
THAT’S REALLY GOOD NEWS.
WE’VE BEEN WATCHING THIS SINCE
TWO YEARS AGO WHEN YOU SAID
WE’RE GETTING INTO THE AUTO CHIP
BUSINESS.
>> YEAH, THIS IS AN EXCITING
TIME FOR US.
YOU KNOW, IT’S A RECORD GROWTH
FOR QUALCOMM.
IT REALLY -- I CANNOT THINK OF
ANYTHING BETTER TO TALK ABOUT
THE DIVERSIFICATION OF THE
COMPANY.
WHAT’S REALLY HAPPENING, LIZ,
WE’RE WINNING THE FUTURE OF THE
AUTOMOTIVE SEMICONDUCTOR
BUSINESS.
THE PIPELINE, IN TWO MONTHS WENT
FROM $19 TO $30 BILLION, HIGH
PREDICTABILITY OF REVENUES AND
WE’RE TWICE WHAT WE SAID IN OUR
INVESTOR DAY LAST YEAR.
WE’RE EXCITED.
>> AAGREE, BUT THIS IS THE YEAR
TO DATE PICTURE.
WE’VE GOT AN INVESTOR AUDIENCE
AND LOOKING AND SAYING, OKAY,
GREAT.
WHY DOESN’T WALL STREET SEE
THAT? CAN’T PREDICT THE
MARKET.
I SEE A LOT OF UNCERTAINTY RIGHT
NOW IN THE CURRENT ENVIRONMENT.
WE SEE THAT IN CONSUMER.
WE DID SAY IN OUR LAST EARNING’S
CALL FOR PHONE BUSINESS, WE SAW
SOME WEAKNESS MAYBE WE’LL
PERSIST FOR A COUPLE QUARTERS.
WE DON’T KNOW.
BUT THE STORY OF QUALCOMM IS
DIFFERENT AND FUNDAMENTALS OF
DIVERSIFICATION AND EXPANSE ARE
ALL IN PLACE, AND WE SAW THAT
WITH AUTOMOTIVE AND SEEN WITH
OUR INDUSTRIAL BUSINESS AND WE
FOCUS ON WHAT WE CAN CONTROL AND
BUILD THE LONG TERM STORY.
LIZ: ABSOLUTELY.
FOR OUTREBOUNDED VIEWERS WHO --
OUR VIEWERS THAT DON’T KNOW
QUALCOMM INTIMATELY HERE.
IT USED TO BE KNOWN AS A PURE
PLAY SMART PHONE CHIP BUSINESS,
AND YOU HAVE BEEN THERE FOR
MANY, MANY YEARS OF COURSE, BUT
YOU LOOK TO THAT AND SAID, THIS
IS DANGEROUS.
WE’VE GOT TO DIVERSIFY.
I WANT OUR VIEWERS TO UNDERSTAND
EXACTLY WHAT AUTO CHIPS DO. YOU’VE GOT DIGITAL COCKPIT
YOU’VE GOT DIGITAL COCKPIT
DISPLAY, YOU HAVE CAR TO PHONE
ABSORPTION, DRIVE ASSISTANCE,
CONNECTIVITY, HOW ABOUT THAT.
>> YES, WHAT IS HAPPENING WITH
OUR COMPANY AND IT’S VERY
INTERESTING.
WE ALWAYS BE THE COMPANY SETTING
THE PACE OF INNOVATION AND
MOBILE.
WE HAVE A STRONG POSITION IN
MOBILE BUT WE REALIZE THAT THE
TECHNOLOGY THAT WE HAVE CAN FIND
END MARKETS IN DIFFERENT
INDUSTRIES THAT ARE BEING
TRANSFORMED.
AUTOMOTIVE IS A GREAT EXAMPLE OF
THAT AND WE’RE REALLY DOING
SOMETHING REVOLUTIONARY AND CARS
ARE DEALING WITH CHANGE TO EVS
AND ELECTRIFY INDICATION, AND
THE CAR HAS ALL THIS COMPUTING
COMING INTO THE CAR AND THE CAR
GETS CONNECTED TO THE CLOUD.
WHAT WE SAW WAS A OPPORTUNITY TO
BUILD SOMETHING UNIQUE.
GIVE THE CAR COMPANIES A DIGITAL
CHASSI PLATFORM, AND THAT’S WHAT
A DIGITAL CHASSI IS.
IT PROVIDES THEM THE DIGITAL
COBS PIT EXPERIENCE FOR EVERY --
COCKPIT FOR EVERY SCREEN IN THE
CAR AND SCREEN ENTERTAINMENT AND
REAR ENTERTAINMENT AND SMART
MIRRORS AND PROVIDES AUTONOMY
AND ASSISTING DRIVING IN
CONNECTIVITY WITH THE CLOUD AND
SERVICES.
IT’S RESINATING WELL.
THE INDUSTRY IS EMBRACING IT AND
IT’S REFLECTING IN THE PINE PIPE
>> YOU’RE THE CHIP GUY.
FORD ON TUESDAY HAD THE WORST
DECLINE IN MORE THAN A DECADE
AFTER WARNING THAT THE CHIP
ISSUE AND A WHOLE BUNCH OF OTHER
PARTS ISSUES, ARE STILL STUCK IN
A VERY CLOGGED PIPELINE.
CAN YOU GIVE US A WINDOW INTO
THE PIPELINE AT THE MOMENT?
>> LOOK, LET ME TALK ABOUT CHIPS
IN GENERAL AND THEN I’LL COME
BACK TO THE AUTOMOTIVE.
WE’RE IN A VERY FORTUNATE
SITUATION EXACTLY AS WE
PREDICTED AND MAYBE LAST TIME
WHEN I TALKED ABOUT IT, I SAID
FOR US THE CHIP SUPPLY CHAI CRIS
WILL END AT THE END OF THE YEAR.
THAT’S WHAT WE SEE RIGHT NOW.
WE HAVE NO MORE SHORTAGES AND WE
HAVE ALL THE THINGS WE HAVE DONE
TO PUT CAPACITY IN PLACE ARE IN
PLACE AND THAT’S BEHIND US.
HOWEVER, WE’RE STILL SHORT FOR
THE AUTOMOTIVE INDUSTRY AND IT
WON’T EASE TILL 2023.
THE INTERESTING THING LOOKING AT
AUTOMOTIVE MARKET IN THE CURRENT
ENVIRONMENT AND SEEING THERE’S
PENT UP DEMAND THAT WAS NOT MET
FROM THE SHORTAGE IN THE PACKET
AND IT’S DRIVING SALES BUT I
BELIEVE THAT SUPPLY CHAIN WILL
IMPROVE AS WE GO TO 2023.
LIZ: I WANT TO ASK ABOUT --
CAUSE IT’S BEEN A HUGE TOPIC
LATELY SINCE VLADAMIR PUTIN
DECIDED TO INVOKE THE I’M NOT
BLUFFING ABOUT USING WEAPONRY
COMMENT THIS WEEK.
WHEN HE INVADED, WHEN RUSSIA
INVADED UKRAINE, THEY KNOCKED
OFF NEON SUPPLY.
NEON IS A CRUCIAL ELEMENT THAT
IS NEEDED WHEN IT COMES TO
ETCHING SILICON WAFERS.
HOW DO YOU DEAL WITH SOMETHING
LIKE THAT, AND ARE WE TOO
DEPENDENT ON CERTAIN ELEMENTS
AND CERTAIN RARE EARTHS ON
COUNTRY’S LIKE UKRAINE AND
RUSSIA AND CHINA?
>> OKAY.
THAT’S A BROADER TOPIC OF
DISCUSSION, AND I WOULD LIKE TO
TALK ABOUT THIS RESILIENT OF THE
SUPPLY CHAIN IN GENERAL.
LOOK, THE INDUSTRY, WE’RE THE
LARGEST FABULOUS COMPANY AND
DON’T MANUFACTURE BUT WE’RE THE
LARGEST CUSTOMER OF MANY OF THE
FABS OUT THERE.
I THINK BACK THEN DURING THE
CRIMEA INVASION, I THINK THE
INDUSTRY KIND OF UNDERSTOOD
IMPORTANCE OF NEON AND THE
INDUSTRY HAD LARGE INVENTORY AND
NEON AND GAS HAT HAS NOT BEEN AN
ISSUE WITH THE SEMICONDUCTOR
AREA WE’RE IN NOW.
IT’S A WAY BIGGER INPUT ON NEON
GAS.
CHIPS ARE IMPORTANT AND IT’LL BE
AN ESSENTIAL PART OF THE
ECONOMIC GROWTH.
THEREFORE WE NEED TO
GEOGRAPHICALLY DIVERSIFY SUPPLY
CHAIN FOR CHIPS IN THE INPUTS.
THAT’S WHY WE’RE BEING SO
SUPPORTIVE OF THINGS LIKE THE
U.S. CHIPS ACT AND EUROPEAN
CHIPS ACT AND THEY’RE IMPORTANT
AND WE’LL NEED MORE OF THEM.
LIZ: YOU GUYS ARE CHURNING THEM
OUT.
WE’LL BE WATCHING.
THANK YOU, CRISTIANO.
>> VERY HAPPY TO BE HERE.
LIZ: QUALCOMM STILL HOLDING