British chip designer Arm Holdings (NASDAQ:ARM) explored snapping up semiconductor intellectual property supplier Alphawave.

That is, until discussions collapsed.

Qualcomm Inc (NASDAQ:QCOM), an Arm rival, also considered acquiring Alphawave, according to Reuters. Both companies are vying for serializer-deserializer technology. This type of tech enabled companies like Broadcom Inc (NASDAQ:AVGO) to win AI chip customers like Alphabet Inc’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and OpenAI.

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The technology gained traction by enabling chatbots and other applications to operate smoothly by simultaneously stringing thousands of chips together.

Arm’s chips have gained traction among cloud computing companies as the electricity of AI data centers has surged over the years. Arm expects its data center central processing unit market share to reach 50% by the end of 2025, up from around 15% in 2024.

Both Arm and Qualcomm supply companies with data center CPUs.

Reportedly, Arm planned to boost prices by up to 300% and has discussed manufacturing its chips. It aims to increase annual smartphone revenue by ~$1 billion over the next ten years.

Arm, majority owned by Japanese conglomerate SoftBank Group, recorded over 90% market share within the mobile applications market. According to Statista, it boasted a 65% share of the Internet of Things and embedded computing markets globally in 2022.

Price Action: ARM stock is down 0.13% at $106.84 at last check Wednesday.

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