SerDes technology, crucial in the race to accelerate communication between chips, is at the epicenter of the technological battle for the future of artificial intelligence.
Two giants in the semiconductor world, ARM and Qualcomm, are reportedly in a race to acquire Alphawave, the world’s fourth largest provider of intellectual property (IP) in semiconductors, according to specialized media outlet ijiwei, citing sources from Reuters. The goal: to secure fundamental technologies for the development of artificial intelligence (AI) chips, particularly SerDes.
What is SerDes and why does it matter?
SerDes, short for serializer-deserializer, is a technology that allows parallel data signals to be converted into serial signals and vice versa, making it a critical tool for high-speed communication between chips. In the context of AI, this capability is essential, as systems like ChatGPT or massive training platforms require thousands of chips to be interconnected efficiently.
As highlighted by Reuters, the dominance of SerDes has allowed companies like Broadcom to secure key contracts with Google or OpenAI. Similarly, NVIDIA has developed its own SerDes technology and plans to license it as part of its custom chip strategy.
Currently, Arm lacks SerDes technology, and according to GuruFocus, its internal development would take at least two years and a specialized team. Therefore, acquiring Alphawave would be strategic to accelerate its competitiveness in this area.
Current status of the deal
Although Arm held preliminary discussions with Alphawave, it has reportedly decided not to proceed with the acquisition, according to the consulted sources. However, Qualcomm is still seriously considering the purchase and has until April 29 to submit a formal offer under British acquisition regulations. If they fail to do so, it will be considered that they have withdrawn from the negotiation.
The four companies involved —Arm, Qualcomm, Alphawave, and Arm’s parent company SoftBank— have declined to make official comments.
An additional obstacle: WiseWave
The acquisition process could become even more complicated due to Alphawave’s connections to China. The company has a joint venture called WiseWave, in partnership with Wise Road Capital, a Chinese investment fund that was placed on the U.S. blacklist for national security reasons in 2024. This fact could present regulatory barriers both for Arm and Qualcomm if they move forward with the purchase.
A market in full swing
The news comes at a time when AI chips have become the main battleground among tech companies, focusing particularly on accelerating data access and reducing latencies. Both custom chips and interconnection infrastructure are now as important as raw processing power.
In this context, the acquisition of a company like Alphawave could change the balance of power, giving its new owner a critical advantage to meet the explosive demand for scalable AI solutions.
In summary, the battle for Alphawave reflects not just a corporate struggle but a strategic contest for control over the technological heart of the new era of artificial intelligence. It remains to be seen whether Qualcomm will ultimately pursue Alphawave or if other companies will enter the fray.
Source: Trendforce