Can Qualcomm Comptete With Intel?

Qualcomm has confirmed that it will branch out from offering its Snapdragon mobile chips and will soon launch a line of server processors.

The firm’s CEO, Steve Mollenkopf, has remained tight lipped about the plans so far but, according to The Wall Street Journal, said during a meeting with financial analysts in New York on Wednesday that the company is working on chips for the data centre.

There’s no timing yet, either, although Mollenkopf said that his firm is currently “engaged with customers”.

Qualcomm is already the world leader in ARM chips for smartphones, and we assume that the company will develop server chips based on ARM’s 64-bit ARMv8-A architecture as rivals such as AMD have done.

The move will place Qualcomm in competition with chip giant Intel, which is currently one of the biggest server chip makers.

Qualcomm announced last month that it had acquired Cambridge-based chipmaker CSR for a hefty $2.5bn (£1.6bn), as the company looks to push further into the Internet of Things (IoT).

The buyout, which comes two months after CSR rejected a takeover bid from Microchip Technology, will see Qualcomm using the British company to push further into the IoT, automotive and mobile communications markets.

CSR rejected an initial bid from Microchip, but reports claim that the firm has until 5pm UK time today to make a better offer.

However, CSR’s board of directors has unanimously accepted Qualcomm’s offer of 900p a share. The closing price at the time of the offer was 660p.

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