Qualcomm to acquire Alphawave in $2.4B deal to bolster AI ambitions

US chipmaker Qualcomm Inc. has reached an agreement to acquire UK-based semiconductor company Alphawave IP Group Plc for approximately $2.4 billion in cash, marking a significant step in its strategy to expand into artificial intelligence and high-speed data infrastructure.

The proposed acquisition values Alphawave at 183 pence per share, according to a statement released by both companies on Monday.

The deal remains subject to shareholder and regulatory approvals and is expected to close in the first quarter of 2026.

Qualcomm seeks a shift away from smartphones

For Qualcomm, the move signals a decisive shift away from its traditional dependence on the smartphone industry, where growth has slowed.

The acquisition would give Qualcomm access to Alphawave’s high-performance connectivity technologies, which are increasingly in demand in AI servers and data centers powering applications such as OpenAI’s ChatGPT.

Alphawave specializes in silicon IP and connectivity solutions that enable faster data transfer in semiconductors, a critical component in scaling AI models and cloud computing infrastructure.

Qualcomm CEO Cristiano Amon said the purchase aligns with the company’s long-term goal of becoming a broader player in next-generation computing.

“Our acquisition of Alphawave is a strategic investment in the technologies that will power the AI-driven future,” Amon said.

“Their expertise in high-speed connectivity complements our portfolio and strengthens our position in data center and AI markets.”

Strong support from the Alphawave board

Alphawave’s board has unanimously endorsed the all-cash offer, which will require approval from investors holding at least 75% of the company’s shares.

The company said shareholders and directors controlling approximately 50% of the shares have already agreed to vote in favour of the deal.

Shares of Alphawave surged more than 23% to 184.14 pence on Monday morning in London.

The company, which went public in 2021 at 410 pence per share, has struggled to maintain investor confidence amid challenges tied to customer concentration and geopolitical tensions.

Last year, Alphawave scaled back operations in China, a move that reflected growing concerns about exposure to US-China tech frictions.

Cash offer preferred over alternatives

Despite earlier setbacks, Alphawave has recently shown signs of recovery, reporting a surge in orders during the fourth quarter.

CEO Tony Pialis attributed the uptick to growing demand from North American AI clients, underscoring the strategic value of the firm’s technology.

As an alternative to the cash offer, Qualcomm is also offering Alphawave shareholders the option to exchange their shares for Qualcomm stock or a mix of new “series A” and “series B” exchangeable securities.

However, Alphawave’s directors declined to recommend these alternatives, citing the complexity and uncertain valuation involved.

With the proposed acquisition, Qualcomm is positioning itself to gain a stronger foothold in markets driving the next wave of semiconductor innovation, as competition intensifies across the global AI landscape.

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