Qualcomm plans to re-enter the server market with new chips: targeting customers such as Amazon AWS

According to reports, people familiar with the matter revealed that Qualcomm is trying to re-enter the $28 billion server processor market, thereby reducing its dependence on the smartphone market.
The company is looking for customers for a product from chip startup Nuvia, which it acquired last year. As one of the largest buyers in the server chip market, Amazon AWS has agreed to conduct research on Qualcomm’s products.
Both Qualcomm and Amazon declined to comment.
After the news was reported, Qualcomm shares rose 2.9 percent to $152.91 in trading on U.S. stocks. This year, the stock prices of companies in the chip industry have generally fallen. As of Wednesday, Qualcomm shares are down 19 percent this year.
Qualcomm Shou Seat Executive Cristiano? Cristiano Amon is trying to transform Qualcomm into a chip provider with a broader business, rather than just offering smartphone chips. Four years ago, Qualcomm tried to enter the server market, but then chose to give up. At the time, Qualcomm tried to appease investors by cutting costs after repelling Broadcom’s hostile takeovers.
Qualcomm’s Nuvia was founded as a technology provider for the server industry, and the company’s employees included chip designers from Apple. Amon decided in 2021 to acquire Nuvia for about $1.4 billion. At the time, he said Nuvia’s work helped develop Qualcomm’s high-end smartphones and PC chips. lcm tft lcd
If it wants to re-enter the server chip industry, Qualcomm needs to re-establish trust with potential customers. The server industry has also changed dramatically over the past few years. Amazon has developed its own server processors, but continues to source chips from other vendors. Startups like Ampere Computing have also made progress, winning contracts from big customers like Microsoft.
However, Qualcomm may also get a lot of returns. Successful entry into the server chip market means that Qualcomm will be able to sell more expensive products. Qualcomm’s mobile phone processors typically cost tens of dollars, but zui’s high-end server processors cost more than $10,000 each.
According to market research firm IDC, industry investment in cloud infrastructure reached $73.9 billion last year, up 8.8 percent from 2020. Companies such as Amazon, Google, and Microsoft are developing these infrastructures to transfer data around the quansphere.
Bloomberg Intelligence Analyst Mandip? Mandeep Singh says data center processors alone can generate $28 billion in revenue a year. In his research report on Thursday, he noted: “The ARM server market is one of the bright spots in the chip industry, and re-entry into this market will expand Qualcomm’s market participation.” Large cloud computing data centers have long relied
on Intel’s processor technology to run their servers, but these companies are also starting to gradually embrace ARM processors. ARM is a key partner for Qualcomm’s mobile phone processors.
Due to their low power consumption, ARM processors have become dominant in the smartphone market. Now, power consumption is also becoming a pressing issue in the data center industry. As the number of servers grows, servers consume more and more power, so the company wants chips that are more energy efficient.
Amazon
develops its own chips based on ARM design to meet this demand. Amazon’s Graviton processors have evolved for generations, and Amazon is also promoting these processors to customers. SStill, Amazon is still using chips from Intel, AMD and Nvidia, and Qualcomm sees an opportunity to compete with these companies for the market.
Qualcomm’s last attempt at this was in 2018, when Qualcomm launched a server chip based on arm design, centriq 2400, and started foundry production through Samsung Electronics. Qualcomm said the processor is superior to intel xeon processors in terms of energy efficiency and cost. At the public promotion of server chip products in November of that year, potential customers such as Microsoft took the stage to speak and expressed their interest in Qualcomm products.
However, less than a year later, Qualcomm’s management decided to stop the project. Anand, an executive who used to work at Intel and led the work in this area? Anand Chandrasekher also left Qualcomm.
For Intel, Qualcomm’s new zui move will bring more fierce competition to the industry. After being snatched up market share by companies like AMD and Amazon, Intel is also actively developing related technology and manufacturing capabilities.