Demand for AI fuels Qualcomm’s $2.4 billion bid for UK chipmaker Alphawave, as the US tech giant dives deeper into the booming data centre race globally.
US semiconductor giant Qualcomm has agreed to purchase British chip designer Alphawave for approximately $2.4 billion, as part of its strategy to expand into the rapidly growing AI data centre sector.
The deal, announced Monday, sent Alphawave’s shares soaring over 22%, with Qualcomm offering 183 pence per share—a 96 per cent premium to Alphawave’s stock price before Qualcomm’s interest became public.
Qualcomm, a leading supplier of smartphone chips for companies like Apple and Xiaomi, is looking to diversify beyond mobile devices. With Apple increasingly moving chip production in-house, Qualcomm is pushing into data centres and PCs.
Alphawave, known for its high-speed connectivity and compute solutions, fits well with Qualcomm’s low-power CPU and AI processor offerings. The move follows a broader trend of US firms acquiring undervalued UK tech companies amid stagnant market conditions and limited growth opportunities in the British sector.
According to Reuters, despite several deadline extensions and alternative share-based bids, Alphawave’s board intends to recommend Qualcomm’s cash offer, calling it fair and reasonable.
The acquisition, expected to be completed in early 2026, is not anticipated to face major regulatory hurdles. Analysts at Jefferies noted that Alphawave’s previous exit from its Chinese joint venture, WiseWave, should ease any concerns.
Meanwhile, Arm, owned by Japan’s SoftBank, had also shown interest in Alphawave earlier this year but ultimately chose not to proceed with an offer.
