Qualcomm mulling to give up on server chips

Posted on Tuesday, May 08 2018 @ 10:40 CEST by Thomas De Maesschalck
Qualcomm logo
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.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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