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Qualcomm To Buy Startup Nuvia In $1.4B Deal: What Investors Need To Know

Chip and semiconductor manufacturer Qualcomm, Inc. (NASDAQ: QCOM), the second-largest chip and semiconductor manufacturer, announced Wednesday that they are planning on acquiring the chip startup Nuvia, founded by ex-Apple engineers, for $1.4 billion.

Qualcomm plans to utilize Nuvia’s technology in its flagship smartphones, laptops, driving assistance software and networking infrastructure. 

Qualcomm has made an effort in the last year to make the 5G networking market a priority, and said Nuvia’s expertise in designing CPUs will help boost its chip performance and power efficiency.

In the last year, Qualcomm stock has risen nearly 70% amid demand for fast 5G smartphones.

The deal still must go through federal regulatory approval in the United States.

Nuvia originally aimed to create CPUs for computer servers to challenge the control of market leaders such as Intel (NASDAQ: INTC) and Advanced Micro Devices (NASDAQ: AMD).

The acquisition by Qualcomm serves to boost the company’s 5G technology and make it more desirable for cellphone manufacturers.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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