Will Qualcomm’s acquisition of Nuvia fuel growth?

Global wireless technology services company Qualcomm’s acquisition of Nuvia has gotten the thumbs up from its ecosystem partners who believe that it will drive business growth going forward.

On January 14, Qualcomm announced the acquisition of chipmaking company Nuvia for a jaw-dropping $1.4 billion.

At a time where the data center industry is seeing an unprecedented surge in demand due to the pandemic, major players in the chipmaking industry are making significant investments to increase their share in the chip manufacturing market.

Qualcomm’s bet on Nuvia, therefore, also shows the company’s determination to develop its own processors to power next-generation tech services such as 5G, which President and CEO Cristiano Amon sees as “significant opportunities for Qualcomm”.

In the past, Qualcomm has made around 4 dozen acquisitions and with Nuvia, it is looking to take on Intel, AMD and Apple.

“It’s exciting to see Nuvia join the Qualcomm team. Moving forward, we have an incredible opportunity to empower our customers across the Windows ecosystem,” said Panos Panay, Chief Product Officer, Microsoft. “With Nuvia joining the Qualcomm team, we look forward to continuing to innovate and building incredible experiences together. Qualcomm’s commitment to platform technology will help us offer premium smartphone performance to our users around the world,” stated ΤM Roh, President and Head of Mobile Communications Business, Samsung Electronics.

Another partner, Google, pointed out that compute performance, connectivity and power efficiency are critical ingredients that make the billions of Android and Chrome OS devices shine. According to Hiroshi Lockheimer, SVP Platforms & Ecosystems, Google, the addition of Nuvia extends Qualcomm’s capabilities in these three areas and it is exciting to see the next generation of Snapdragon with Nuvia.

The acquisition of Nuvia will enable Qualcomm to continue to advance Snapdragon’s industry leadership and help Acer to continue to innovate and bring high performance, 5G connected devices to our customers globally,” said James Lin, General Manager, Notebooks, IT Products Business, Acer Inc. S.Y. Hsu, co-CEO of ASUS, pointed out that it is excited for the future of our partnership as Qualcomm advances and expands its portfolio and capabilities with the addition of Nuvia.

Bullish on auto sector

It is not the tech partners who seem to be bullish over Qualcomm’s acquisition. Qualcomm’s partner, Bosch, considers the adoption of new in-vehicle services and capabilities as one major driver for growth. “We see the need for high performance, power efficient platforms and appreciate Qualcomm’s ambition to push the boundaries of innovation even further,” said Dr. Andree Zahir, SVP for Infotainment and Connectivity at Bosch. Masashige Mizuyama, Chief Technology Officer, Automotive Company, Panasonic Corporation agrees. “Innovation in the automotive market is occurring at an accelerated pace,” he said.

Peter Popp, Head of Purchasing in Vehicle Networking and Information at Continental is of the view that with the addition of Nuvia it is looking to bring advanced capabilities to next generation vehicles.

“We look forward to Nuvia joining the Qualcomm team as we continue to work together to deliver advanced in-vehicle services and technologies for the customers of our next-generation vehicles,” said Dan Nicholson, VP, Global Electrification, Controls, SW Electronics at General Motors.

The addition of the Nuvia team will enable Qualcomm to continue to consolidate compute and connectivity ECUs into high performance, power efficient platforms to push the boundaries of innovation even further, highlighted Jin-Yong Kim, President of Vehicle components Solutions (VS) Company, LG Electronics Inc.

Nuvia: A two-year old billion dollar baby

Qualcomm’s move to acquire Nuvia for a staggering $1.4 billion is due to the credentials of the company’s founders. Gerard Williams III, John Bruno, and Manu Gulati are former engineers at Apple, where they were involved in designing Apple’s iconic A-series chips that power the iPhone and iPad.

With this acquisition, the three co-founders and their employees will be joining Qualcomm. “CPU performance leadership will be critical in defining and delivering on the next era of computing innovation,” said Williams.