Qualcomm aims to challenge Apple and Intel with $ 1.4 billion deal for chip startup By Reuters


© Reuters. Qualcomm building shown in San Diego

By Stephen Nellis (Reuters) – Qualcomm (NASDAQ 🙂 Inc said on Wednesday it will acquire Nuvia Inc, a chip startup founded by Apple Inc (NASDAQ 🙂 veterans, for $ 1.4 billion, with plans to put the company’s technology in company on your smartphone. automotive and portable processors. The deal marks a major push by Qualcomm to reestablish a leadership position in chip performance after several years of high-profile patent licensing litigation with rival Apple and regulatory authorities. It also comes amid a change at the helm with Qualcomm announcing this month that Cristiano Amon, its current president and head of its silicon division, will replace outgoing CEO Steven Mollenkopf, effective June 30. For iPhone chips, Nuvia has been working on a custom CPU core design that it had said would be used in server chips. Qualcomm, however, plans a broad use of Nuvia processors, saying they would power flagship smartphones, next-generation laptops, infotainment systems, and driver assistance systems, among other applications. While laptop makers have traditionally turned to Intel Corp (NASDAQ 🙂 for processors, Qualcomm has been supplying PC chips for several years to companies such as Samsung Electronics (OTC 🙂 Co Ltd and Microsoft Corp (NASDAQ :). “It’s exciting to see Nuvia join the Qualcomm team,” said Panos Panay, Microsoft’s chief product officer, in a statement about the deal. “Moving forward, we have an incredible opportunity to empower our customers across the Windows ecosystem.” The deal is also important because it could help decrease Qualcomm’s reliance on Arm Ltd, which is being bought by Qualcomm rival Nvidia (NASDAQ 🙂 Corp for $ 40 billion. Most of Qualcomm’s current chips use Arm’s directly licensed compute cores, while Nuvia’s cores use Arm’s underlying architecture. but they are custom designs. For Qualcomm, the use of more custom core designs, a move Apple has also made, could lower some licensing costs for Arm in the short term and facilitate the switch to a rival architecture in the long term. and Apple have resolved disputes over Qualcomm’s patent royalties, Nuvia and Apple have disagreed. In 2019, Apple sued Nuvia CEO Gerard Williams (NYSE 🙂 III, alleging that Williams rec transferred Apple employees to Nuvia while he was still working at Apple. Apple did not sue Nuvia or claim any theft of intellectual property, and a trial date has not been set.

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