Here's Why Qualcomm Is Looking To Return To Server Market With New Chip

With retail giant Amazon agreeing to take a look at Qualcomm's offerings, the latter is looking to return to the server processors market with a new chipset, the media has reported.

This comes in the midst of the Ukraine-Russia conflict and Covid-19-induced lockdowns in China. Image: Getty

With retail giant Amazon agreeing to take a look at Qualcomm's offerings, the latter is looking to return to the server processors market with a new chipset, the media has reported. Qualcomm is reportedly looking to reduce its dependency on smartphones and it is seeking customers for a product stemming from its purchase of Nuvia, says a report by news agency Bloomberg.

This comes in the midst of the Ukraine-Russia conflict and Covid-19-induced lockdowns in China which has deepened the supply-chain crisis and hurt demand, thus, forcing many smartphone makers to cut orders for chips. San Diego, California-headquartered Qualcomm is renewing its focus on diversifying into other sectors such as automotive and cut dependency on supplying chips to premium smartphones amid cooling smartphone demand.

According to reports, Amazon has confirmed that it has agreed to take a look at the offering. However, according to a Reuters report, Qualcomm said it does not comment on rumours.

Earlier in July, Qualcomm had warned against declining smartphone sales, compared to its earlier outlook of flat growth, the media has reported. The chipset maker forecast its fourth-quarter revenue below Wall Street estimates while bracing for a difficult economy and a slowdown in demand for smartphones which is likely to hurt Qualcomm's mainstay smartphone chip business.

It should be noted that more than half of the chip manufacturer's total sales come from the smartphones segment. The company makes modem chipsets that power some models of Samsung's flagship Galaxy S series as well as Apple iPhones.

Among the reasons that are hurting the already affected supply chain issues are the Ukraine crisis and China Covid-19 lockdowns which are forcing consumers to buy less and thus, cut orders for chipsets.