Qualcomm takes over Nuvia for $1.4Bn to boost next-gen computing

American semiconductor company- Qualcomm has reportedly announced the acquisition of Nuvia- a chip- making startup founded by former Apple employees, for approximately USD 1.4 billion. With this purchase, Qualcomm aims at deploying the latter’s technology into its laptop, automotive processors, and smartphones.

Seemingly, the deal indicates a push by Qualcomm to re-establish itself as a prominent name in the chip-making industry following many years of high-profile patent licensing litigation with Apple and the regulatory authorities.

Founded by three of Apple’s ex-top semiconductor executives that were in charge of developing and designing iPhone chips, Nuvia works on custom CPU core designs that would be used in server chips.

In due course, Qualcomm aims at using processors developed by Nuvia to power next-gen laptops, smartphones, driver-assistance systems, infotainment systems, among numerous applications. It is worth noting that, laptop companies have traditionally relied on Intel for processors, while Qualcomm has supplied PC chips for many years to leading technology companies like Microsoft and Samsung.

Apparently, the deal is extremely significant as it could reduce Qualcomm’s dependence on Arm, which is being acquired by Qualcomm’s rival Nvidia for USD 40 billion.

For the record, chips being produced by Qualcomm use computing cores that are licensed by Arm. While Nuvia’s cores deploy Arm’s advanced technology. For Qualcomm, the use of more custom core designs could help lower the cost of licensing to Arm in the short term and make it easier to shift to a rival architecture in the coming times.

Although Qualcomm and Apple have resolved their disputes over the former’s patented royalties, Apple and Nuvia continue to be out of steps.

According to reliable sources, in the year 2019, Apple filed a lawsuit against Nuvia’s CEO, Gerard Williams III, alleging that Williams had recruited Apple's workforce to Nuvia while he was still working with Apple. However, Apple did not sue the company, nor did not allege any IP theft.

Source Credit: https://www.thehindubusinessline.com/news/qualcomm-technologies-acquires-nuvia-for-14-billion/article33573964.ece#