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11/24/2024 11:12:45 am

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Qualcomm Challenges Intel With New ARM-based Server Chip Centriq 2400

Qualcomm

(Photo : Getty Images/CNBC) Qualcomm display at CES 2016, the annual Consumer Electronics Show, in Las Vegas, Nevada.

Despite skepticism towards server chips manufactured using ARM technology, semiconductor company Qualcomm is throwing its hat into the market, which is largely dominated by Intel. Qualcomm recently unveiled the Centriq 2400 server processor, a 10nm processor with integrated networking interfaces and storage.

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The entire server processor market is practically controlled by tech giant Intel. The semiconductor manufacturer controls more than 99 percent of the market share based on unit shipments in the last several years. Although chip manufacturers like IBM and AMD have shown interest in competing with Intel in this market, their products are still in various stages of development, according to Forbes.

In January, Qualcomm publicly announced the company's plan to enter the server processor market. The company held a demo of its first pre-production server processor, which is based on the ARM architecture, according to PC World.

ARM architecture may be a big name when it comes to mobile applications and hardware but not in the server market. Qualcomm is betting big on its Centriq 2400 server processor, which may dictate the future of the ARM architecture in the server market.

Qualcomm has a monumental task ahead that entails convincing companies to switch their x86-based hardware and software ecosystem and adopt the new ARM architecture. Aside from Intel, Qualcomm is also poised to challenge IBM and AMD, both of which are also vying to get a piece of the tightly contested market share.

Despite Qualcomm's promises regarding the performance of its Centriq 2400 server processor, companies are still skeptical about the shift towards the ARM architecture. ARM-based server chips are virtually non-existent, and it would be hard to convince companies to adopt this new technology since it would cost them a lot of money.

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