Cristiano Amon (Qualcomm)

Credit: Qualcomm

Qualcomm has no plans to abandon its efforts to create processors for data centres, the company’s president, who oversees the chip division, said.

Qualcomm, the largest maker of chips in mobile phones, last year launched chips that use technology from Softbank Group’s ARM Holdings to power the workhorse computer servers behind cloud-based services such as social networks.

Qualcomm’s push to enter the data centre market puts it in direct competition with Intel, which dominates data centres and now draws half of its revenue from servers and other “data centric” chips.

But in May, Bloomberg reported that Qualcomm was exploring whether to sell or shut down the server chip unit.

Qualcomm president Cristiano Amon told Reuters that the chipmaker is making staff reductions in the unit but intends to keep operating it, albeit with a narrower focus on large internet companies in the United States and China.

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