- Qualcomm buys British chipmaker Alphawave Semi for $2.4bn
- Deal aims to bolster data centre and AI chip portfolio
What happened: Qualcomm acquires Alphawave Semi to increase data‑centre presence
Qualcomm announced on 9 June 2025 it will acquire Alphawave Semi, a UK-based semiconductor firm, for $2.4 billion in cash. Alphawave designs high-speed wired connectivity and compute technologies for data centres and AI applications. The transaction values Alphawave at 183 pence per share, representing a 96% premium to its pre‑offer price. Alphawave shareholders can choose cash or Qualcomm stock in exchange.
Alphawave’s share price climbed nearly 25% in London trading. Qualcomm’s shares rose approximately 1% in pre-market. The deal supports Qualcomm’s expansion into infrastructure for next-generation data‑centre workloads. The acquisition is expected to close in Q1 2026, subject to regulatory and shareholder approval. Qualcomm reported a 12% year-over-year increase in smartphone chip revenue in its most recent quarter, though it slightly missed guidance this quarter.
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Why it’s important
The deal positions Qualcomm as a stronger player in the data-centre market where demand for AI and high-performance computing is growing. Alphawave’s wired connectivity and chiplet expertise complement Qualcomm’s CPU (Oryon) and NPU (Hexagon) chip lines. The move illustrates industry consolidation and the convergence of mobile silicon and data-centre needs.
Transaction approval by early 2026 could shift competitive dynamics between Qualcomm, Intel, AMD, Nvidia, and other cloud infrastructure vendors. It also signals a trend of global tech consolidation, as US firms acquire EU-based chip IP assets. While Alphawave’s current financial contribution to Qualcomm may be modest, integration could bolster long-term expansion in AI inference and infrastructure markets.
