Qualcomm Inc. has announced it will buy British chipmaker Alphawave IP Group for $2.4 billion in cash, a move that will help it strengthen its position in artificial intelligence and reduce its dependence on the slowing smartphone market, Bloomberg reported.
Alphawave specializes in high-speed semiconductors and connectivity solutions used in data centers and AI systems — industries that are actively growing against the backdrop of the popularity of services like ChatGPT.
The deal still needs regulatory and shareholder approval. It is expected to close in the first quarter of 2026. Qualcomm is offering about 183 pence per Alphawave share. Although the company's shares rose after the news, they are still below their 2021 IPO level of 410 pence. The decline was due to a reliance on a limited number of large customers and a reduction in business in China due to geopolitical tensions.
Despite these challenges, Alphawave continues to grow: in the fourth quarter, the company reported a surge in orders, mainly from North American clients working on AI solutions, which Alphawave CEO Tony Pialis called a positive signal for the business.
In addition to a cash payment, Qualcomm is offering shareholders an alternative option to exchange Alphawave shares for Qualcomm shares or securities. However, Alphawave's board of directors did not support these options, stating that it could not guarantee their stability and profitability for investors.