[News] Qualcomm Reportedly to Supply Custom Chips to a Hyperscaler in December Quarter, Expands Data Center Push

Qualcomm is stepping up its push into the data center market, targeting custom silicon opportunities with hyperscale customers. According to The Wall Street Journal, CEO Cristiano Amon said the company is working with a leading hyperscaler to develop custom silicon, with initial shipments expected to begin in the December quarter.

While details about the hyperscaler customer remain limited, Qualcomm is said to be aiming for a long-term partnership. The report notes that the company plans to provide further updates on its data center strategy at its investor day in June.

Expanding on this strategy, Reuters reports that Cristiano Amon said the company is developing three types of chips: CPUs, inference accelerators, and custom ASICs. He added that Qualcomm now has substantial intellectual property to support these efforts following its acquisition of Alphawave IP Group last year.

Last year, Qualcomm announced plans to compete with NVIDIA in data center chips. At the time, the company said its initial customer would be Humain, an AI startup backed by the Saudi government, according to Bloomberg.

This push into data centers comes as Samsung Electronics and Apple increasingly adopt in-house chips, The Wall Street Journal notes. CNBC adds that Qualcomm lost a major customer when Apple began replacing its iPhone modems with in-house chips starting in 2025.

Qualcomm Sees China Smartphone Bottom, Expands AI Partnerships

Beyond its data center expansion, the company reported its Q2 earnings. According to CNBC, adjusted earnings per share came in at $2.65, while revenue met expectations at $10.6 billion. However, its third-quarter revenue forecast fell short of expectations. The report adds that a surge in memory prices this year has weighed on Qualcomm’s consumer electronics end market. That said, according to CNBC, CEO Cristiano Amon said smartphone sales in China are expected to bottom out in the current quarter as customers run down inventory.

In addition, CNBC reports that CEO Cristiano Amon said memory shortages have not impacted Qualcomm’s data center chip shipments this year, noting that the company remains in the early stages of its expansion and operates at a smaller scale than established providers.

Against this backdrop, Qualcomm is also expanding its partnerships to position for future growth. CNBC notes that OpenAI announced a partnership with Qualcomm last week to develop an AI chip for smartphones, which could power a future device centered on AI agents.

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(Photo credit: Qualcomm)