Qualcomm Announces its Entry into Server Chip Market
Qualcomm, after excelling in the market of smartphone processors and cellular chips, is aiming to target the data centre markets with new server chips based on ARM technology. Qualcomm CEO Steve Mollenkopf revealed during a meeting with financial analysts that the firm is working on chips for the data centre. However, he didn’t give away any specific product details.
This means that Qualcomm will join the already established companies like AMD, AppliedMicro and Cavium, which manufacture chips based on ARM Holdings’ 64-bit ARMv8-A architecture. The company stayed quiet on important questions, such as how many cores, how fast will they work and when they will be available?
He did say, however, that the market for ARM server processors could be worth $15bn by 2020 and that Qualcomm plans to capture a piece of it. Qualcomm sees big opportunities with the Internet of Things (IoT) and views it as the next logical step from the mobile era in that wearable technology and all those connected gadgets will be gathering enormous quantities of data that need to collect in a data centre.
Qualcomm is the world leader in ARM chips for smartphones with around 58 percent revenue share, according to market research firm Strategy Analytics. In fact, the Chinese government has accused it of having a monopoly in the region, despite local competition from the likes of Allwinner, MediaTek, and Rockchip.
Mollenkopf did not reveal as when Qualcomm will bring a server chip to the market, but he stressed on the fact that it would take time for the company to build this new business.
