Qualcomm Is Plotting a Return To Server Market With New Chip

Qualcomm is taking another run at the market for server processors, Bloomberg News reported Thursday, citing people familiar with its plans, betting it can tap a fast-growing industry and decrease its reliance on smartphones. From a report: The company is seeking customers for a product stemming from last year's purchase of chip startup Nuvia, according to the people, who asked not to be identified because the discussions are private. Amazon.com AWS business, one of the biggest server chip buyers, has agreed to take a look at Qualcomm's offerings, they said. Chief Executive Officer Cristiano Amon is trying to turn Qualcomm into a broader provider of semiconductors, rather than just the top maker of smartphone chips. But an earlier push into the server market was abandoned four years ago under his predecessor. At the time, the company was trying to cut costs and placate investors after fending off a hostile takeover by Broadcom. This time around, Qualcomm has Nuvia, staffed with chip designers from companies such as Apple. Amon, who acquired the business for about $1.4 billion in 2021, has said that its work will help revitalize Qualcomm's high-end offerings for smartphones. But Nuvia was founded as a provider of technology for the server industry. The market for cloud computing infrastructure -- the kind of equipment that Amazon, Google and Microsoft use to whisk data around the world -- generated $73.9 billion last year, according to research firm IDC. That was up 8.8% from 2020. The owners of giant cloud data centers have long relied on Intel's chip technology for their servers. But they're increasingly embracing processors that use designs from Arm, a key partner in phone chips for San Diego-based Qualcomm.

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