Qualcomm has agreed to acquire Alphawave Semi, a U.K.-based semiconductor company focused on high-speed data center connectivity, for around $2.4 billion.

According to Qualcomm CEO Cristiano Amon, the deal will help Qualcomm grow its data center business.

“The combined teams share the goal of building advanced technology solutions and enabling next-level connected computing performance across a wide array of high-growth areas, including data center infrastructure,” Amon said in a press release.

Qualcomm’s acquisition of Alphawave, which makes a range of wired connectivity and compute technologies, comes a few months after the bigger chip company bought the generative AI division of Vietnamese startup VinAI, as well as internet of things company Edge Impulse. Qualcomm has sought to diversify its portfolio as it faces headwinds, including a weakening smartphone market — smartphone processors make up a big portion of Qualcomm’s revenue — and potentially tariffs.

The deal is expected to close during the first calendar quarter of 2026.