Mobile-phone chip giant Qualcomm Inc. said Wednesday that it has agreed to acquire a chip startup founded by former Apple Inc. engineers, adding to a wave of deals remaking the semiconductor industry.
Qualcomm said it plans to buy Nuvia Inc. and use the two-year-old company’s technology in its flagship smartphones, driver-assistance systems, laptops and networking infrastructure. The proposed all-cash transaction is valued at about $1.4 billion, Qualcomm said, before working capital and other adjustments.
Nuvia’s expertise in designing central processing units, Qualcomm said, would help it boost chip performance and power efficiency—characteristics that are vital to success in the hot 5G-networking market that Qualcomm has made a priority.
The San Diego-based chip company is also bolstering its talent pool with the planned acquisition, adding Nuvia’s staff and three founders, Gerard Williams III, Manu Gulati and John Bruno. Mr. Williams was lead chip architect at Apple before decamping to start Nuvia two years ago. Mr. Gulati and Mr. Bruno both worked at Apple and Alphabet Inc.’s Google unit before Nuvia.
“The Nuvia team are proven innovators,” said Cristiano Amon, Qualcomm’s president who this month was named to replace Steve Mollenkopfas chief executive at midyear.
Qualcomm Bolsters 5G Ambitions With Planned $1.4 Billion Acquisition Source link Qualcomm Bolsters 5G Ambitions With Planned $1.4 Billion Acquisition