Qualcomm predicts that the data center space is about to go all in on custom processors, and intends to be right there with the necessary silicon in advance with help from a new subsidiary.
Alphawave Semi is a company regarded as a world leader in creating the kind of chips and chiplets that should ensure robust data transfers at high speeds, but with reduced power consumption.
Qualcomm also believes that its intellectual property (IP) can enhance AI inferencing for high-volume data processing.
As such, it might intend to use Alphawave's IP to augment future versions of the Oryon CPUs and Hexagon NPUs currently found in smartphones and PCs specifically designed for inclusion in data centers (and possibly also servers and networks) in the near future.
The acquisition is valued at US$2.4 billion and is projected to reach completion in the first quarter of 2026, pending approval of the merger by UK authorities.