Qualcomm to Acquire Chip Startup Nuvia for $1.4 Billion to Challenge Apple

Qualcomm on Wednesday mentioned it’s going to purchase Nuvia, a chip startup based by Apple veterans, for $1.4 billion (roughly Rs. 10,240 crores), with plans to put the agency’s expertise into its smartphone, laptop computer, and automotive processors.

The deal marks an enormous push by Qualcomm to reestablish a number one place in chip efficiency after a number of years of high-profile patent licensing litigation with rival Apple and regulatory authorities.

It additionally comes amid a change within the helm with Qualcomm saying this month that Cristiano Amon, its present president and head of its silicon division, will exchange outgoing CEO Steven Mollenkopf, efficient June 30.

Founded by three of Apple’s former high semiconductor executives answerable for iPhone chips, Nuvia has been engaged on a customized CPU core design that it had mentioned could be utilized in server chips.

Qualcomm, nevertheless, plans a broad use of Nuvia’s processors, saying they’d energy flagship smartphones, next-generation laptops, infotainment methods, and driver-assistance methods amongst different functions.

While laptop computer makers have historically turned to Intel for processors, Qualcomm has been supplying PC chips for a number of years to corporations similar to Samsung and Microsoft.

“It’s thrilling to see Nuvia be a part of the Qualcomm group,” Panos Panay, Microsoft’s chief product officer, said in a statement on the deal. “Moving ahead, now we have an unimaginable alternative to empower our prospects throughout the Windows ecosystem.”

The deal is also significant because it could help lessen Qualcomm’s reliance on Arm, which is being bought by Qualcomm rival Nvidia for $40 billion (roughly Rs. 2,93,570 crores) .

Most of Qualcomm’s current chips use computing cores licensed directly from Arm, while Nuvia’s cores use Arm’s underlying architecture but are custom designs. For Qualcomm, using more custom core designs – a move that Apple has also made – could lower some licensing costs to Arm in the short term and make it easier to move to a rival architecture in the longer term.

While Qualcomm and Apple have resolved disputes over Qualcomm’s patent royalties, Nuvia and Apple have been at loggerheads.

In 2019, Apple sued Nuvia’s Chief Executive Gerard Williams III, alleging Williams recruited Apple employees to Nuvia while he was still employed at Apple. Apple did not sue Nuvia itself, nor did it allege any intellectual property theft, and no trial date has been set.

© Thomson Reuters 2020

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