Qualcomm, trying to break Intel Corp.\u2019s lucrative stranglehold on server chips, said it began selling a new processor that will outperform its rivals and has support from some of the industry\u2019s biggest buyers of the technology.<\/p>\n
The Centriq 2400 processor, which uses ARM Holdings technology, is now on sale, Qualcomm said Wednesday at an event in San Jose, California. The chips, which are manufactured by Samsung Electronics Co., offer better results than an Intel Xeon Platinum 8180 processor, based on energy efficiency and cost, Qualcomm said.<\/p>\n
The world\u2019s biggest maker of chips for phones is kicking off the public phase of its attempt to get into new markets just as it has become the target of what would be the largest technology takeover ever. Broadcom Ltd. is offering to buy it for about $105 billion in a proposal that Qualcomm views as a low-ball bid, which may precipitate a lengthy proxy battle demanding attention from the company\u2019s management.<\/p>\n
Qualcomm\u2019s server chip push, led by former Intel executive Anand Chandrasekher, is part of Chief Executive Officer Steve Mollenkopf\u2019s attempt to diversify the company\u2019 sources of revenue. He\u2019s also targeting personal computers and is in the middle of trying to close a more than $40 billion acquisition of NXP Semiconductors NV, to kick-start Qualcomm\u2019s move into the growing market for chips used in cars.<\/p>\n
For Intel, which has more than 99 percent of the market for chips that run computer servers in data centers, Qualcomm represents the first major effort by a chip designer that uses ARM technology to break into this lucrative market.<\/p>\n
\u201cWe take all competitors seriously, and while Qualcomm is launching its very first server processor, cloud customers around the world have been rapidly adopting our newest Intel Xeon Scalable processors that deliver outstanding performance on a wide range of workloads,\u201d Intel said in a statement.<\/p>\n
Intel shares slid less than 1 percent to $46.64 while Qualcomm rose 1.4 percent to $65.02 at 2:53 p.m. in New York.<\/p>\n
While ARM technology is the fundamental basis for phone chips, the designs haven\u2019t been used much in data centers, where Intel\u2019s designs dominate.<\/p>\n
\u201cThat\u2019s an industry that\u2019s been very slow moving, very complacent on the side that we\u2019re going after,\u201d Paul Jacobs, executive chairman of Qualcomm, said onstage at the event. \u201cWe\u2019re going to change that.\u201d<\/p>\n
Servers, the machines that crunch data in corporate networks and act as the backbone of the internet, are a much smaller market than phones and personal computers when measured by shipments. But the price that the chipmakers are able to charge for the high-performance parts needed to run them makes the market attractive. Qualcomm\u2019s new Centriq chips will sell for $1,995 each. In its most recent quarter, Intel\u2019s data center group turned $4.9 billion of revenue into $2.26 billion of operating profit.<\/p>\n
Companies whose business depend on large data centers, such as Alphabet Inc.\u2019s Google, Facebook Inc., Microsoft Corp. and their Chinese rivals, determine which component suppliers are successful. Their orders now make up more than half the market as corporations outsource their computing over the internet to services provided by Amazon.com Inc.\u2019s Amazon Web Services and its rivals.<\/p>\n
\u201cWe welcome choice in the processor design space for data centers,\u201d said Bart Sano, vice president, platforms, Google, in a statement provided by Qualcomm. \u201cChoice leads to innovation which ultimately benefits our users.\u2019\u2019<\/p>\n
Qualcomm is trying to break Intel\u2019s lucrative stranglehold on server chips.<\/p>\n","protected":false},"author":341034,"featured_media":184874,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,15],"tags":[131,3524,47180],"class_list":["post-236774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-hardware","tag-intel","tag-qualcomm","tag-server-chips"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/236774"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=236774"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/236774\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/184874"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=236774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=236774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=236774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}