Qualcomm, known for their mobile chipsets, have been trying to enter the server chip industry for awhile now. But after months of struggle, there were rumours that they are going to give up. However, it seems as though earlier rumours about Qualcomm ending their attempt at building ARM-based data chips are false, according to the Qualcomm president.
Cristiano Amon, Qualcomm president says, “We are not looking at strategic options, we are not selling. We are still focused on it.” He adds that they would be laying off some staff but not ending the server chip division. Furthermore, their server chip arm will instead be merged with Qualcom’s Qualcomm CDMA Technologies unit. The CDMA Tech arm primarily designs and sells mobile phone chips. This move is probably aimed at helping Qualcomm gain some cost efficiencies.
Their restructured server chip unit will now focus on large cloud computing players. He isn’t naming U.S. targets; Amon does say that Qualcomm is hoping to sell to Chinese internet giants such as Alibaba and Tencent though.
We’re still unsure how exactly Qualcomm intends to enter the server chip market while not rivaling Intel head on.
(Source: Reuters)
