Qualcomm will not be exiting the data centre market anytime soon according to its president who oversees the firm's chip division.
Last year the company launched its own data centre processors using technology from Softbank Group's ARM Holdings. This move puts Qualcomm, the largest manufacturer of smartphone chips, in direct competition with Intel which currently controls a majority of the data centre chip market.
Earlier this year though, it appeared that the company was considering the option of shutting down its server chip unit.
Qualcomm President Cristiano Amon clarified the firm's position and revealed that though the company is reducing the unit's staff, it will continue to operate and will focus on catering to large internet companies in the US and China.
Qualcomm's server chip business will now be rolled into its Qualcomm CDMA Technologies unit that designs and sells chips for smartphones. Going forward, the server chip unit will focus on supplying large cloud computing companies such as Alibaba, Tencent and Baidu in China.
Large internet companies often write their own proprietary software which can then be customised for Qualcomm's chips while smaller businesses usually have to make do with off-the-shelf data centre software written for Intel's x86 chips.
With the rapid growth of cloud computing, Qualcomm's server chip division could still be successful by catering to a more niche market.
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