• Qualcomm agrees to acquire Alphawave for about $2.4 billion.
• The deal offers shareholders a 96% premium per share.
• Focus on enhancing Qualcomm's technology for AI applications.

U.S. chipmaker Qualcomm has announced it will acquire British semiconductor firm Alphawave for approximately $2.4 billion in an effort to bolster its artificial intelligence technology. The acquisition price of 183 pence per share represents a nearly 96 percent premium to Alphawave’s stock price before Qualcomm revealed its interest, leading to a share price surge of 22 percent in early London trading, just below the offer price, according to Channel News Asia and Reuters.

This move is part of Qualcomm's strategy to reduce its dependence on the smartphone market, which has seen slowed growth, by expanding into promising sectors like AI and data centers. Alphawave specializes in high-speed semiconductor technologies essential for AI applications, enhancing Qualcomm's technological footprint in a rapidly evolving market, according to South China Morning Post.

The deal is subject to regulatory and shareholder approvals and is projected to close in the first quarter of 2026. Currently, Alphawave's board unanimously supports the cash offer, with shareholders controlling 75 percent of the company required to approve the deal, as stated by Reuters and South China Morning Post.

As a fallback option, Alphawave shareholders can choose to exchange their shares for securities linked to Qualcomm, although Alphawave's directors have advised against this alternative offering due to its complexity. The deal's implications are noteworthy, especially given that demand from North American AI customers has been a key driver for Alphawave, according to Channel News Asia and South China Morning Post.