U.S. semiconductor giant Qualcomm has agreed to acquire UK-based Alphawave for approximately $2.4 billion in a move to strengthen its position in AI-related data center technologies. News of the deal caused Alphawave shares to surge by more than 22%, while Qualcomm shares gained 4%.
Alphawave Semi is a semiconductor design company specializing in high-speed wired connectivity and compute technologies, offering advanced solutions for data centers. This acquisition is part of Qualcomm’s broader strategy to diversify beyond its core smartphone business and increase its footprint in alternative sectors like data infrastructure.
Qualcomm President and CEO Cristiano Amon stated:
“The acquisition of Alphawave Semi is intended to accelerate Qualcomm’s expansion into the data center space and strengthen our key technology assets. Alphawave’s high-performance connectivity solutions complement our power-efficient CPU and NPU cores.”
Deal Details:
- Alphawave shareholders will receive 183 pence per share — a 96% premium to the closing price on March 31.
- Qualcomm also proposed two alternative all-share offers, but Alphawave’s board unanimously supports the cash offer, calling it “fair and reasonable.”
- Analysts at Jefferies do not expect major regulatory hurdles, especially since Alphawave had already exited its Chinese joint venture WiseWave.
- The acquisition is expected to close in the first quarter of 2026.
This acquisition highlights a growing trend of American companies purchasing British tech firms amid low valuations and economic sluggishness in the UK. Many local companies are opting for U.S. stock exchanges for better valuations and funding opportunities.
Reuters reported in April that SoftBank-owned Arm had also shown interest in acquiring Alphawave but ultimately decided not to proceed.
This deal marks a strategic milestone for Qualcomm. By acquiring Alphawave, the company aims to boost its capabilities in artificial intelligence and data center infrastructure, strengthen its competitiveness in emerging tech sectors, and reduce its reliance on the smartphone market.
