Qualcomm has agreed to acquire British semiconductor company Alphawave for $2.4 billion in cash, marking the latest move by the US chip giant to reduce its reliance on smartphones and expand deeper into the booming artificial intelligence sector.

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The all-cash deal, announced Monday, values Alphawave at 183 pence per share — a 96% premium on its share price before the two companies disclosed merger talks earlier this year. Alphawave’s board has unanimously recommended the offer, and directors and shareholders holding 50% of shares have already pledged their support. The deal will require 75% shareholder approval and is expected to close by early 2026, pending regulatory clearance.

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The acquisition offers Qualcomm a foothold in high-speed connectivity and data infrastructure, both critical components in AI-driven data centres. Alphawave, which listed on the London Stock Exchange in 2021, specialises in ultra-fast data transmission chips used in servers, cloud computing, and next-generation AI applications — the kind that power tools like ChatGPT.

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“This acquisition accelerates our AI infrastructure roadmap,” said Qualcomm CEO Cristiano Amon, who has been steering the company away from its historic dependence on the mobile market. Smartphone sales have stagnated globally, pushing chipmakers to diversify into growth areas such as autonomous vehicles, wearables, and AI accelerators.

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Alphawave shares surged 23% on the news to 183.60 pence, having already more than doubled since the start of the year. While the firm’s 2021 IPO priced shares at 410 pence, Alphawave has spent much of its time as a listed company trading below that level. It struggled initially due to a narrow customer base and tensions over its exposure to China — a market it began retreating from last year.

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Despite the early challenges, Alphawave has reported increasing traction in North America, with a surge in AI-related orders helping to bolster its pipeline. CEO Tony Pialis has previously cited growing demand from data centre clients as a key driver of recent growth.

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Shareholders can also opt for two alternative equity-based arrangements, involving either Qualcomm stock or a mix of newly created “Series A” and “Series B” Qualcomm exchangeable securities. However, Alphawave’s board has declined to recommend these options, citing uncertainties in their valuation and fairness.

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The deal reflects a broader trend in the semiconductor industry as legacy chipmakers race to reposition themselves amid an AI gold rush. While Nvidia dominates the GPU market, companies like Qualcomm are looking to carve out space in supporting infrastructure — from high-speed interconnects to power-efficient AI chips.

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The acquisition also adds to the growing number of UK tech firms being absorbed by international players, following Arm’s return to the public markets via a US listing and ongoing concerns about Britain’s ability to retain homegrown innovation.

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For Qualcomm, this deal is a bet on long-term infrastructure needs — and a signal that it wants to be more than just a smartphone chipmaker in the age of artificial intelligence.

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