A month ago, word was going around that Qualcomm considered to exit the server chip market. At the time, Bloomberg reported about rumors of Qualcomm exploring two options; shutting down the unit or selling it to a new owner.
Qualcomm President Cristiano Amon just told Reuters that his company intends to restructure and keep operating this unit. However, they will be cutting jobs and will narrow the focus on large Internet companies in the US and China.
San Diego-based Qualcomm declined to say whether it had considered selling the server chip unit at some point in the past. The company instead pointed to an April earnings call in which Chief Executive Officer Steve Mollenkopf said Qualcomm was considering cost-cutting options in areas that are not central to Qualcomm’s business, which overwhelmingly comes from selling chips and licensing technology for mobile phones.
Amon told Reuters that the server chip business will be rolled into Qualcom’s Qualcomm CDMA Technologies unit, which designs and sells mobile phone chips, to gain cost efficiencies.
Basically, Qualcomm will focus on a small number of players that are sufficiently large to write their own software, so the whole x86 vs ARM situation becomes less of an issue.