Accord Software and Systems is poised to deliver more than 4-5 million Navigation with Indian Constellation (NavIC) chips to both commercial and passenger vehicle manufacturers within the next 2-3 years, according to CEO Murali Krishna S. This development gains significance due to the government's mandate for a NavIC-based vehicle tracking system in commercial vehicles, and the imminent requirement for smartphones to integrate NavIC chipsets alongside other global positioning systems (GPS).

Starting early 2024, the Bengaluru-based company plans to supply these chips, produced in collaboration with fabrication partner GlobalFoundries. Additionally, Accord is exploring a semiconductor design-linked scheme and intends to apply for it with their next generation of chips.

For Accord, the revenue prospects lie not only in smartphones but also in supplying NavIC-powered chipsets to industries such as automobile, logistics, aviation, drones, and railways. The government's push for the NavIC-powered tracking system in commercial vehicles, combined with the system's advantages, is expected to boost demand for Accord's chipsets.

NavIC, developed by the Indian Space Research Organisation (ISRO), operates as an independent stand-alone navigation satellite system, similar to global systems like GPS, GLONASS, BeiDou, and Galileo. Unlike other systems, NavIC enhances accuracy, availability, and continuity by utilising additional satellites.

Recently, Apple incorporated support for NavIC in iPhone 15 Pro models through Qualcomm chipset, hinting at the potential future integration of NavIC chips in mobile devices. Accord sees opportunities in licensing their semiconductor intellectual property for integration into smartphones and IoT devices. However, competition exists from established players like Qualcomm and MediaTek, which already have contracts with smartphone companies.

Accord's primary focus remains on the non-smartphone segment, especially in global navigation satellite system (GNSS) applications, given the vast scale and volume in these markets. The company anticipates widespread use of NavIC chips in the automotive sector, particularly when automatic toll collection systems are implemented, eliminating the need for vehicles to halt at toll gates.

Additionally, NavIC's application in aerial vehicles like drones and passenger air mobility, as well as its role in disaster management, enhances its significance. NavIC's ability to track locations and movements within India and up to 1,500 km beyond its borders is expected to expand further, with ISRO planning to increase coverage to 3,000 km for a more extensive global reach. For NavIC to compete globally, an adequate number of satellites are essential to ensure comprehensive coverage, according to Krishna S.

Source: The Financial Express