Qualcomm is preparing to end data-center server processor development. Despite their efforts to break Intel’s hold on the server chip market segment – which included selling the Centriq 2400, based on ARM technology last year – they failed to make much progress. The tech giant hasn’t said much about their server chips since.
It looks as though Qualcomm are deciding between shutting down their server chip division or selling it off. The division was working on how to turn ARM technology into chips suitable for servers. The issue stems from ARM’s architecture primarily used in less power-intensive products, such as smartphones. They remain the biggest company trying to get ARM designs into the computing market’s high-end server chip segment. Server chips are extremely profitable despite not being the biggest market segment; individual chips sell for multiple thousands of dollars.
Only last month, Qualcomm CEO Steve Mollenkopf said their focus for now is reducing spending in non-core product areas. This may save Qualcomm the expense of designing some of the most expensive chips that the semiconductor industry produces. Saying that, it would also depart from their long-term goal of being less dependent mobile-phone system-on-chips.