Qualcomm to Acquire Alphawave Semi for US$2.4 Billion

Qualcomm Incorporated has announced an agreement to acquire Alphawave IP Group plc (Alphawave Semi) in a transaction valued at about US$2.4 billion. The primary objective of the acquisition is to enhance and accelerate Qualcomm's expansion into the data center sector by integrating high-speed connectivity technologies.

The strategic rationale behind the acquisition centers on technological synergy. Cristiano Amon, President and CEO, Qualcomm Incorporated, says that Alphawave Semi’s high-speed wired connectivity and computing technologies are complementary to Qualcomm’s low-power CPU and NPU cores. “Qualcomm’s advanced custom processors are a natural fit for data center workloads,” he adds, highlighting the company’s intent to build a more robust and competitive solutions portfolio in a rapidly evolving market.

This acquisition occurs within a broader shift in the data center industry, driven primarily by two forces: the exponential growth of AI inference workloads and a transition toward custom processor architectures. Modern data centers require computing solutions that deliver both high performance and energy efficiency to manage operational costs and environmental impact, says Qualcomm in an official press release.

Historically, server processor markets have relied on standard architectures. However, the demand for workload-specific optimization — such as for AI inference — has led large cloud operators and technology companies to seek or develop custom silicon. Qualcomm’s experience in designing high-performance, low-power processors for the mobile sector places the company in a favorable position to adapt this expertise for data centers.

The addition of Alphawave Semi addresses a critical need to complement Qualcomm’s computing capabilities (CPU and NPU) with high-speed interconnect technology, a key component in ensuring system-wide performance in data-intensive environments. The combination creates a comprehensive value proposition. Qualcomm brings next-generation processors, including the custom Qualcomm Oryon CPU and Qualcomm Hexagon NPU, designed to deliver high-performance processing with optimized power consumption.

Alphawave Semi is a recognized leader in high-speed wired connectivity. Its portfolio includes intellectual property, custom silicon, connectivity products, and chiplet technology. Chiplets represent a semiconductor design paradigm that assembles complex processors from smaller, interconnected modules rather than a single monolithic chip. This approach improves manufacturing yields and enables the integration of diverse technologies.

Alphawave Semi’s expertise in low-latency, high-bandwidth interconnects is essential for efficient communication between chiplets. This ensures that Qualcomm’s compute cores avoid performance bottlenecks. Alphawave’s solutions serve high-growth applications including data centers, data networking, and storage, supporting the foundational infrastructure for next-generation data transmission.

The acquisition is subject to customary closing conditions. Completion is expected in 1Q26, contingent upon regulatory approvals, approval by the requisite majority of Alphawave Semi shareholders, and sanction by the High Court of the United Kingdom.