By Stephen Nellis

(Reuters) – Qualcomm (NASDAQ:) Inc said Tuesday that German automobilemaker BMW would use Qualcomm’s chips for its next generation driver-assistance/self-driving system.

Qualcomm, a San Diego company that supplies chips for mobile phones worldwide is known as the largest supplier. However, Qualcomm has begun diversifying its business with over a third coming from other sources.

Qualcomm made the announcement about BMW’s win before it presented to investors. It was expecting new details on its strategy.

BMW spokesmen stated that new chips would be used to build its Neue Klasse car series, which will begin production in 2025.

Qualcomm’s key area of growth is automotive chips. The company supplies chips for infotainment panels and instrument panels to General Motors Co. (NYSE:).

The company also works to compete with Nvidia Corp (NASDAQ:) Corp in the chip sector. Intel Corp (NASDAQ) in providing the chips necessary to power driver-assistance computer systems for automated lane-keeping, and ultimately self-driving vehicles.

Qualcomm and BMW will both use the same Qualcomm computer vision processor chip for data analysis from rear, surround and front-view cameras. BMW will use the Qualcomm central computing chip as well as another set of Qualcomm chips in order to communicate with cloud computing data centres.

BMW indicated that they would maintain the partnership with Intel’s Mobileye self-driving technology division (F:), although there are no plans for an autonomous car to be released in 2021.

The 7 Series Full-Size sedan will be released next year with Intel’s Level 3 Autonomous Driving Technology. In this technology, cars are capable of driving themselves in certain conditions, but still need a driver.

They did not specify how much of BMW’s group’s product line-up would be covered by the Qualcomm deal.