Qualcomm eyes challenge to Apple, Intel with $1.4 billion deal for chip startup
The deal marks an enormous push by Qualcomm to re-establish a number one place in chip efficiency after a number of years of high-profile patent licensing litigation with rival Apple and regulatory authorities.
It additionally comes amid a change within the helm with Qualcomm saying this month that Cristiano Amon, its present president and head of its silicon division, will exchange outgoing CEO Steven Mollenkopf, efficient June 30.
Founded by three of Apple’s former prime semiconductor executives answerable for iPhone chips, Nuvia has been engaged on a customized CPU core design that it had stated could be utilized in server chips.
Qualcomm, nevertheless, plans a broad use of Nuvia’s processors, saying they might energy flagship smartphones, next-generation laptops, infotainment programs and driver-assistance programs amongst different purposes.
While laptop computer makers have historically turned to Intel Corp for processors, Qualcomm has been supplying PC chips for a number of years to corporations equivalent to Samsung Electronics Co Ltd and Microsoft Corp.
“It’s exciting to see Nuvia join the Qualcomm team,” Panos Panay, Microsoft’s chief product officer, stated in an announcement on the deal. “Moving forward, we have an incredible opportunity to empower our customers across the Windows ecosystem.”
The deal can also be important as a result of it may assist reduce Qualcomm’s reliance on Arm, which is being bought by Qualcomm rival Nvidia for $40 billion.
Most of Qualcomm’s present chips use computing cores licensed instantly from Arm, whereas Nuvia’s cores use Arm’s underlying structure however are customized designs. For Qualcomm, utilizing extra customized core designs – a transfer that Apple has additionally made – may decrease some licensing prices to Arm within the quick time period and make it simpler to transfer to a rival structure in the long term.
While Qualcomm and Apple have resolved disputes over Qualcomm’s patent royalties, Nuvia and Apple have been at loggerheads.
In 2019, Apple sued Nuvia’s Chief Executive Gerard Williams III, alleging Williams recruited Apple workers to Nuvia whereas he was nonetheless employed at Apple. Apple didn’t sue Nuvia itself, nor did it allege any mental property theft, and no trial date has been set.
