Qualcomm To Buy UK’s Alphawave Semi In $2.4B Deal To Bolster Data Center Strategy

Qualcomm stated that the deal would bring “key assets” to its product lineup, enabling it to better address the rising demand for high-performance, low-power computing driven by AI inference workloads.

Qualcomm (QCOM) announced on Monday that it will acquire British chipmaker Alphawave Semi for $2.4 billion, a move aimed at strengthening its custom silicon offerings and accelerating its return to the data center CPU market.

The chipmaker’s stock rose as much as 1% in pre-market trade on Monday following the announcement. 

Alphawave Semi, based in the U.K., develops high-speed wired connectivity and computing technology for data centers, AI, networking, and storage. Its portfolio includes custom silicon, connectivity products, and chiplets focused on reducing latency and power consumption.

Qualcomm said the deal would bring “key assets” to its Oryon CPU and Hexagon NPU product lines, which it views as well-positioned for the rising demand in high-performance, low-power computing driven by AI inference workloads.

“Qualcomm’s advanced custom processors are a natural fit for data center workloads,” CEO Cristiano Amon said in a statement. “The combined teams share the goal of building advanced technology solutions and enabling next-level connected computing performance.”

Amon announced Qualcomm’s re-entry into the data center market in May at Computex 2025. While he did not reveal any detailed roadmap, the CEO said Qualcomm was well-positioned for the move. 

Alphawave CEO Tony Pialis called the agreement a milestone that would help expand the company’s reach and technological capabilities. “By combining our resources and expertise, we will be well-positioned to expand our product offerings, reach a broader customer base, and enhance our technological capabilities,” he said.

Jefferies analysts told Reuters the acquisition is unlikely to face significant regulatory hurdles following Alphawave’s exit from its Chinese joint venture, WiseWave. According to the report, Alphawave’s board has unanimously agreed to recommend the cash offer.

The transaction is expected to close in the first quarter of 2026, pending shareholder approval and U.K. court sanction.

Qualcomm’s stock is down nearly 4% this year and 30% over the past 12 months. 

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