US-based Chipmaker Qualcomm Inc., has decided to go shopping for auto parts and it has laid its eyes on Swedish auto parts maker Veoneer Inc., for $ 4.6 billion, an 18.4 percent premium over a deal accepted by the latter's board in July by Canada's Magna International Inc.

Veoneer's US listed shares jumped 28 percent as the stage was prepared for a bidding war. Veoneer was cut off from airbag and seatbelt maker Autoliv (ALV.N) in 2018.

The auto parts maker stated that its director board will look into whether Qualcomm’s offer falls in line with its legal duties and the terms of the Magna merger deal, although Magna is yet to express its take on the matter.

However, Magna is interested in buying Veoneer in the same way that Qualcomm is, as it attempts to compete with ADAS companies like Aptiv, Bosch, and Continental for a larger portion of the burgeoning market. It offered about $ 3.8 million in cash.

Aside from powering mobile phones with its chips, Qualcomm has been into the vehicle segment by delivering chips to carmakers for a decade now. Last year the chipmaker commenced upcon making its own range of ADAS systems called as Snapdragon Ride.

Advanced driver assistance systems, often known as ADAS in the industry, have been in high demand, with features ranging from collision warning to parking assist. To monitor the environment, analyse the situation, and take action, certain systems collect data from cameras and radar.

It announced a partnership with Veoneer earlier this year to build Arriver, a software and semiconductor platform for driver-assistance systems.

Self-driving cars are still years away, but most automakers are incorporating assisted-driving systems like adaptive cruise control into new models.

Qualcomm CEO Cristiano Amon stated, "as the automotive industry continues to shift, it is becoming increasingly critical for automakers to have a partner who builds horizontal platforms that promote innovation and encourage competition”.

If Qualcomm can persuade Veoneer shareholders to accept. Qualcomm's present automotive business will quickly expand from its current focus on infotainment, telematics, and instrument cluster to being able to supply ADAS solutions and more," says Daniel Newman, Futurum Research analyst.