Qualcomm to Acquire Alphawave for $2.4 Billion to Boost AI Data Center Expansion
U.S. chipmaker Qualcomm announced on Monday that it will acquire British semiconductor firm Alphawave for approximately $2.4 billion, signaling Qualcomm’s strategic push into the rapidly growing AI data center market. Alphawave’s shares surged over 22% following the announcement.
Alphawave specializes in high-speed semiconductor technologies for data centers, an area that complements Qualcomm’s existing portfolio and helps diversify its reliance beyond the smartphone sector. Qualcomm, a leading supplier of chips for major smartphone brands including Apple and Xiaomi, is increasingly focusing on data centers and personal computers, partly due to Apple’s shift toward in-house processors for iPhones.
Alphawave shareholders will receive 183 pence per share, representing a nearly 96% premium over the company’s closing price on March 31, just before Qualcomm revealed its interest. Qualcomm’s shares rose about 4% on the news.
The deal includes two alternative all-share offers following extensions by the UK takeover panel, but Alphawave’s board plans to recommend the cash offer as fair and reasonable.
Jefferies analysts expect no significant regulatory hurdles, citing Alphawave’s recent exit from its Chinese joint venture, WiseWave.
Qualcomm President and CEO Cristiano Amon emphasized that Alphawave’s advanced connectivity and compute technologies will enhance Qualcomm’s power-efficient CPU and neural processing units.
The acquisition is slated to close in the first quarter of 2026. Notably, SoftBank-owned Arm had considered acquiring Alphawave but ultimately chose not to proceed.