Qualcomm Teams with Amazon for Custom Silicon and Optical Connectivity

Qualcomm Inc. (QCOM) has signed a multi-generation collaboration deal with Amazon.com Inc. (AMZN), aimed at creating customized silicon for large-scale AI data centers focused on inference. The announcement led to a 6.02% intraday increase in Qualcomm's stock, while Amazon shares slipped by 1.12%. This partnership will also see the two companies working together on optical connectivity, leveraging Qualcomm's SerDes and optical DSP technologies to support high-bandwidth demands within AWS networks.

Qualcomm plans to deepen its use of AWS infrastructure, including Amazon Bedrock, for electronic design automation workloads, with the goal of shortening chip design cycles. CEO Cristiano Amon emphasized that 'Data center infrastructure will require advances in both computing and connectivity.'

The partnership does not disclose specific terms, but it is part of Qualcomm's efforts to expand its presence in the data center market. The company aims to reach $15 billion in data center sales by fiscal 2029.