Skip to main content

Qualcomm wants out from server chip business

(Image credit: Image Credit: Jejim / Shutterstock)

Qualcomm is reportedly looking for a way out of the server chip business just a year after pledging to shake-up the Intel-dominated market.

The media are reporting that Qualcomm was looking for a way to sell its chips to large data centre owners like Amazon or Google which are, in almost full capacity, powered by Intel.  It is a very lucrative market, as these chips sell for multiple thousands of dollars, a piece. However, it seems the company has failed and that it is now looking for a way out.

There are two possible paths it can take, according to Bloomberg. It will either sell the unit, or shut it down. A Qualcomm spokesperson declined to comment on the issue.

Qualcomm's first server chip was the Centriq 2400 and it was running on ARM technology, built by Samsung. The company started selling it last year, and was even better than what was hot at the time – Intel Xeon Platinum 8180. It was cheaper and more energy efficient. At the time, Microsoft publicly voiced its support for the chip.

Bloomberg (opens in new tab) says the move could save the company some solid greens, but at the same time, it would mean failure to achieve the goal of being less dependent on smartphones and other mobile devices.

Image Credit: Jejim / Shutterstock

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.