Qualcomm (NASDAQ:QCOM)'s CFO, Akash Palkhiwala, has announced plans to potentially package the new Snapdragon X Elite PC chip locally in India. This initiative, revealed in an Economic Times interview on Thursday, is being explored in collaboration with the Indian government and Tata Group.
The decision to venture into PC chip manufacturing was influenced by the opportunity to scale smartphone technology to laptops. The Snapdragon X Elite PC chip, powered by Qualcomm's Oryon CPU, aims to deliver powerful AI experiences without compromising battery life. Tech giants like Microsoft (NASDAQ:MSFT) are also pivoting towards this AI transition.
Global PC makers such as Lenovo, HP (NYSE:HPQ), and Dell (NYSE:DELL) are expected to deploy the Snapdragon X Elite in their next-gen PCs. Despite facing challenges associated with leading node manufacturing, Qualcomm identifies a clear synergy with Tata Group in chip packaging at Indian facilities.
Palkhiwala acknowledged Qualcomm's India team's crucial role in developing these advanced chips. He stated that significant contributions from Qualcomm's top engineers in India have been instrumental in this venture. Through its long-standing partnership with the PMO and Tata Group, the company is considering utilizing Indian manufacturing facilities for their chips.
Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD) are identified as Qualcomm's main competitors in the PC chips space. However, Qualcomm believes its power efficiency for AI applications gives it a competitive edge. The rise of generative AI apps is predicted to significantly change user-device interactions, shifting towards an AI assistant model that performs tasks based on user preferences.
In addition to this initiative, Qualcomm is spearheading global 6G development and plans to work closely with the Indian government on spectrum and network deployment requirements. Collaborations with Indian telecommunications giants Reliance Jio and Bharti Airtel are also planned for 6G network deployment.
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