UK’s Chip Maker Alphawave Extends Qualcomm’s Acquisition Offer Timeline as Negotiations Continue

UK chip manufacturer Alphawave IP Group has announced a deadline extension for Qualcomm’s takeover offer. According to Reuters, the UK takeover panel shifted the deadline for Qualcomm to acquire Alphaware from 29th April to May 12.

Combining Expertise

Qualcomm’s takeover of Alphawave will enable the two entities to combine their expertise in intelligent connectivity and computing with high-performance chip technology.

Early this month, Qualcomm confirmed its intention to acquire Alphawave IP Group in a filing made at the London Stock Exchange. At the time, the US wireless technology firm had said there were guarantees about a firm offer or the terms under which such an offer could be made.

UK’s takeover rules required Qualcomm to either declare its intention not to proceed to make an offer or to announce a firm intention to make an offer for Alphawave. The market valuation of the UK semiconductor company currently stands at over $900 million.

Following the Qualcomm buyout update, Alphawave said that talks with the US tech giant were continuing and that the extension would enable it to make a formal bid as per UK regulations. At the beginning of this month, Alphawave said it could not provide a financial forecast for this year due to market volatilities emanating from the evolving nature of US tariffs.

Alphawave’s Chip Technology

Alphawave designs and licenses chip technology for networking, data centers and storage. Qualcomm’s interest in buying Alphawave points to its continuing plan to innovate and expand its solution portfolio in AI, connectivity, and computing. For a long time, the company has had a reputation of facilitating digital transformation and tech advancements across industries.

Before the global smartphone processor seller announced plans to acquire the UK chip company, Arm Holdings had considered buying it off before stepping back. Arm Holdings was interested in Alphawave’s SerDes (Serializer/Deserializer) chip technology, which is critical in modern computing infrastructure.

SerDes chips facilitate the transfer of data in servers, network switches, and other computer systems. They support the conversion of parallel data streams into a single serial stream, which lowers power consumption and improves transmission speeds. The chips reduce the risk of data transmission errors that can be triggered by minor technical discrepancies like cable length variations.

SerDes modules also support processors to receive incoming traffic and convert it into formats that can be analysed efficiently.

Market Performance

As one of the world’s biggest modem suppliers, Qualcomm has made a huge leap in mobile connectivity. Last month, the company unveiled its latest 5G modem for AI. According to its CEO, Cristiano Amon the modem will outshine Apple in performance as it integrates advanced machine learning capabilities, optimizes network performance and provides ultra-fast speed.

Last year, the smartphone connectivity company issued a bullish sales forecast for the fourth quarter. The company issued revenue forecasts of between $10.5 billion to $11.3 billion for the quarter ending December 2024. The forecast caused its stock prices to soar 7%.

Alphawave shares surged 5.5% in EU market trading following the extension deadline. For the markets, the extension pointed to a strategic shift in Aphawave’s position. Alphawave stocks have gained close to 30% since Qualcomm expressed interest to acquire the UK chip company.

The focus on high-speed connectivity solutions in the chip industry has resulted in a robust performance for Alphawave. In 2024, the company reported a 34% surge in new bookings. This increased investor confidence significantly. As Qualcomm and Alphawave continue to negotiate, stocks of the chip maker have received a strong buy signal that points to positive technical sentiments.