Qualcomm to acquire Alphawave Semi for $2.4bn

August 2025 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

August 2025 Issue

In a move aimed at accelerating its expansion into data centres and acquiring key technological assets, US chipmaker Qualcomm Incorporated is set to acquire UK chip designer Alphawave Semi in a transaction valued at approximately $2.4bn.

Under the terms of the agreement, Alphawave shareholders will receive 183 pence per share – a premium of nearly 96 percent compared to the closing price on 31 March, the day before Qualcomm disclosed its interest.

Qualcomm had previously made two alternative all-share offers for Alphawave following several deadline extensions. However, Alphawave’s board intends to unanimously recommend the cash offer to shareholders, considering it fair and reasonable.

This acquisition coincides with other significant transactions in the UK tech sector, including the $1.1bn takeover of quantum computing start-up Oxford Ionics by its US counterpart IonQ, and the proposed $3.7bn acquisition of precision and testing equipment specialist Spectris by US private equity firm Advent.

Alphawave Semi is a global leader in high-speed wired connectivity and compute technologies. The company provides intellectual property, custom silicon, connectivity products and chiplets that enable faster, more reliable data transfer with enhanced performance and reduced power consumption.

Its technologies underpin the core infrastructure for next-generation services across a range of high-growth sectors, including data centres, artificial intelligence (AI), data networking and data storage.

“Qualcomm’s acquisition of Alphawave Semi represents a significant milestone for us and an opportunity for our business to join forces with a respected industry leader and drive value to our customers,” said Tony Pialis, president and chief executive of Alphawave Semi. “By combining our resources and expertise, we will be well-positioned to expand our product offerings, reach a broader customer base, and enhance our technological capabilities.”

With over 40 years of technological leadership, Qualcomm offers a broad portfolio of solutions built on cutting-edge AI, high-performance, low-power computing and connectivity. Its Snapdragon platforms power advanced consumer experiences, while its Dragonwing products support businesses and industries in scaling their operations. In collaboration with its ecosystem partners, Qualcomm drives digital transformation to enrich lives, improve business outcomes and advance societies.

“Alphawave Semi has developed leading high-speed wired connectivity and compute technologies that are complementary to our power-efficient central processing unit and neural processing unit cores,” said Cristiano Amon, president and chief executive of Qualcomm. “Qualcomm’s advanced custom processors are a natural fit for data centre workloads. The combined teams share the goal of building advanced technology solutions and enabling next-level connected computing performance across a wide array of high-growth areas, including data centre infrastructure.”

The acquisition is expected to complete in the first quarter of 2026, subject to the satisfaction of certain conditions, including regulatory approvals, approval by the requisite majority of Alphawave Semi shareholders, and sanction by the UK High Court.

Mr Pialis concluded: “Together, we will unlock new opportunities for growth, drive innovation, and create a leading player in AI compute and connectivity solutions.”

Fraser Tennant