Jakarta, INTI - San Diego-based chip and processor manufacturer Qualcomm projects sales of USD 15 billion (approximately Rp269.07 trillion) from its data center business by 2029, following its diversification.
At an investor presentation, Qualcomm Chief Financial Officer Akash Palkhiwala said that the data center business will bring in USD 5 billion for fiscal 2027, with USD 1 billion coming from the new custom-chip customers.
Qualcomm also said that it expects revenue of USD 40 billion from chip sales outside the mobile phone segment by 2029, which has been the company's mainstay. This figure is up from the initial estimate of USD 22 billion.
“We will be truly diversified,” said Palkhiwala.
AI Chip Demand from Big Companies
Previously, Qualcomm revealed that MetaTrader and Microsoft will use its AI chips, and two other companies have requested custom AI chips.
Qualcomm's decision to shift into the AI chip business reflects pressure on the smartphone market, which has recently been under increasing pressure from a memory chip shortage caused by a significant surge in demand for AI infrastructure.
The expansion of the AI industry, not just for smartphone chips, has dramatically increased the prices of technology devices equipped with chips and memory. This includes laptops, RAM, and even video game consoles.
Furthermore, Qualcomm stated that Microsoft will use a new chip that relies on low-cost memory chips commonly used in phones and laptops, instead of the high-capacity chips typically used by Nvidia and Cerebras Systems.
Meanwhile, Meta will use Qualcomm's new Dragonfly C1000 CPU, specifically designed for AI data centers.
Qualcomm has made several attempts to enter the data center segment and has now succeeded in entering an industry that is already highly competitive, including in the custom chip segment.
Currently, Qualcomm produces three types of chips: CPUs (Central Processing Units), inference accelerators, and ASICs (custom Application-Specific Integrated Circuits). These chip segments are already occupied by competitors such as Broadcom and Marvell.
Conclusion
Qualcomm projects its data center business will generate revenue of USD 15 billion by 2029 as part of its business diversification strategy beyond the smartphone market. The company estimates the data center division will contribute USD 5 billion by 2027, while its custom chip business is projected to generate USD 1 billion. Qualcomm also raised its revenue target from non-smartphone chip sales to USD 40 billion, a significant increase from its previous estimate of USD 22 billion. This expansion is driven by the increasing demand for AI infrastructure and pressure on the smartphone market.
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