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Qualcomm President Says No Plans to Exit Information Centre Enterprise

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Qualcomm has no plans to desert its efforts to create processors for information centres, the corporate’s president, who oversees the chip division, stated.

Qualcomm, the biggest maker of chips in cellphones, final 12 months launched chips that use know-how from Softbank Group Corp’s ARM Holdings to energy the workhorse laptop servers behind cloud-based companies equivalent to social networks.

Qualcomm’s push to enter the info centre market places it in direct competitors with Intel Corp, which dominates information centres and now attracts half of its income from servers and different “data-centric” chips.

However in Might, Bloomberg reported that Qualcomm was exploring whether or not to promote or shut down the server chip unit.

Qualcomm President Cristiano Amon instructed Reuters on Monday that the chipmaker is making employees reductions within the unit however intends to maintain working it, albeit with a narrower give attention to giant Web firms in the US and China.

“We’re not taking a look at strategic choices. We’re not promoting. We’re nonetheless centered on it,” Amon instructed Reuters.

San Diego-based Qualcomm declined to say whether or not it had thought-about promoting the server chip unit sooner or later previously. The corporate as a substitute pointed to an April earnings name by which Chief Govt Officer Steve Mollenkopf stated Qualcomm was contemplating cost-cutting choices in areas that aren’t central to Qualcomm’s enterprise, which overwhelmingly comes from promoting chips and licensing know-how for cellphones.

Amon instructed Reuters that the server chip enterprise shall be rolled into Qualcomm’s CDMA Applied sciences unit, which designs and sells cell phone chips, to realize price efficiencies.

Amon stated the restructured server chip unit will give attention to giant cloud computing gamers. He wouldn’t identify US targets, however stated the corporate is hoping to promote to Chinese language Web giants equivalent to Alibaba Group Holding, Tencent Holdings, and Baidu by means of a three way partnership in China.

Giant Web firms have a tendency to jot down a lot of their very own Inner software program and might customise it for Qualcomm’s chips. Which means they won’t battle like smaller gamers to adapt off-the-shelf information centre software program that’s overwhelmingly written to run on Intel’s so-called x86 chips.

“It’s totally clear to us that the ARM alternative is concentrated on just a few gamers the place you do not have the software program x86 barrier to entry,” Amon stated.

© Thomson Reuters 2018



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