In short, Qualcomm is trying to become in the automotive market, especially in the ADAS and automotive driving space, what it has been for years in mobile phones: a leader. The acquisition will enable Qualcomm to expand its product portfolio and offer complementary systems because the use of 5G will also play an enormous role in the automotive market. Only 5G can guarantee the secure and stable data transmission that is necessary for autonomous driving.
Qualcomm can therefore combine solutions from Snapdragon Ride with 5G SoCs and create unique and unrivaled packages. Even though Qualcomm will have many competitors in the automotive space, such as Intel (INTC), Nvidia (NVDA), and Tesla (TSLA), none of these companies has such a large footprint in the 5G area. The same is true for Veoneer's biggest competitors Bosch, Continental, Denso, and ZF.