Word is going around that Qualcomm no longer wants to be in the server market. The chip designer aimed to compete with Intel in this market, by offering ARM-based chips for datacenters. Bloomberg reports Qualcomm is exploring two options; either it will shut down the server chip unit or it will sell it to a new owner.
While abandoning the effort would save Qualcomm the expense of designing some of the most expensive chips that the semiconductor industry produces, it would also be a retreat from the company’s goal of becoming less dependent on the slowing market for mobile-phone parts. Qualcomm’s management promised investors in January that the company would cut $1 billion in annual costs to improve profitability as part of an effort to fend off a hostile takeover bid by Broadcom Inc.
Qualcomm's Centriq 2400, the firm's first ARM-based server chip, hit the market in 2017.