Qualcomm is betting big on a company designing powerful but power-efficient chips for data centers -- $1.4 billion big. The company on Wednesday said it has reached a deal to acquire Nuvia, a two-year-old startup run by former Apple chip executives.

But Qualcomm won't just be aiming its newly acquired technology at servers. Instead, it plans to use Nuvia CPUs -- the brains of devices -- in everything from its smartphone chips to its laptop processors and automotive components. That could mean much more powerful and battery efficient Samsung Galaxy smartphones, Lenovo laptops and General Motors cars.

While Nuvia and Qualcomm both use Arm technology for their processors, Qualcomm licenses the cores from Arm while Nuvia designs its own. It allows the startup to customize them for high performance and power efficiency better than Qualcomm is able, as well as makes it less reliant on Arm, which is being acquired by Nvidia for $40 billion. That's important as mobile-like chips expand to more areas, 5G becomes widespread and consumers and businesses demand more and more battery life from their devices. Apple also designs its own Arm-based processor cores. Qualcomm previously designed its own cores but moved away from that strategy.

"5G, the convergence of computing and mobile architectures, and the expansion of mobile technologies into other industries are significant opportunities for Qualcomm," Cristiano Amon, Qualcomm's president who will take on the role of CEO this summer, said in a press release. "Together [with Nuvia], we are very well positioned to redefine computing and enable our ecosystem of partners to drive innovation and deliver a new class of products and experiences for the 5G era."

Qualcomm has long been known as the world's biggest wireless chipmaker, and it counts Samsung, Apple and virtually all major handset makers in the world as its customers. The aim with mobile chips has long been to be as powerful as possible while consuming low amounts of power. In recent years, Qualcomm also has pushed its components into computers, cars and various other products. It's likely that Samsung's new Galaxy S21 lineup, expected to launch Thursday at the company's first Unpacked of 2021, will use Qualcomm Snapdragon 88 processors. And future phones could benefit from Nuvia's high-performance, battery efficient cores.

Qualcomm's acquisition of Nuvia also could give Arm PCs the boost they need. While Apple's first Arm-based computers have earned rave reviews, early Windows PCs that use Qualcomm chips have been described as under powered. That could change when the company incorporates Nuvia's technology into its processors. Arm CEO Simon Segars told CNET's Stephen Shankland that Apple's M1-based Macs likely will kickstart the Arm-based PC era. Already, companies like Samsung and Microsoft use Qualcomm processors in tablets and PCs instead of powerful but battery hungry chips from Intel.

"This acquisition and the pedigree of the team Qualcomm acquired now positions [it] to go back to fully custom-designed CPU cores and back to a proprietary CPU architecture, which I think is the right technical direction for Qualcomm," Creative Strategies analyst Ben Bajarin noted.

Nuvia overall will help Qualcomm better compete against Apple, which has become a leader when it comes to chip performance. Apple's A Series chips have long powered its iPhones and iPads, and late last year, it introduced its first computers that use its own M1 processors instead of chips from Intel. The new computers have powerful performance, but also sip battery life, largely because of the innovations Apple has packed deep inside its chips.

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For years, computer makers have tried to sell PCs built on Arm processors, a power-efficient family that powers smartphones. Compared with models running on x86 chips from Intel and AMD, though, Arm-based PCs have suffered from performance and software compatibility shortcomings.

Now Apple's M1 processors, the Apple-designed member of the Arm family that powers new MacBooks, are changing views of Arm PCs. The M1 chips offer not just good battery life, like Qualcomm's Arm chips in some Windows laptops, but also good performance. At the same time, x86 PCs have improved only gradually.

So it's no surprise to hear some new optimism from Arm Chief Executive Simon Segars.

"What we're starting to see now is real innovation going on in a market where there hasn't been a huge amount of innovation," Segars said in an interview during the CES 2021 technology conference. "Any time there's discontinuity that makes people question how we're doing this, that injects energy into innovation."

Part of that innovation comes from Arm itself, which is pouring new engineering resources into PC chip designs, he said. Another part could come from Nvidia, the leading graphics chipmaker that's trying to acquire Arm for $40 billion.

Arm indeed has a better chance thanks to Apple, Endpoint Technologies analyst Roger Kay said. "Arm has been talking about breaking into this market forever. I think they're on the cusp of really being able to do it. Apple's the avenue in," he said. Success for Arm would mean PCs powerful enough for mainstream buyers but efficient enough that you could leave your charger in a desk drawer for a day or two at a time with no worries.

Although Arm isn't a household name, the Cambridge, England-based company's technology powers a huge swath of the computing market. Most notably, Arm chips power just about every smartphone. They're also used in networking gear, internet-of- things gadgets, Raspberry Pi computers for hardware hackers and the world's fastest supercomputer. About 20 billion Arm chips ship each year.

To succeed, Arm fans will have to reckon with new chips coming from Intel and AMD that emerged at CES. AMD's Ryzen 5000 series of laptop chips will offer up to 17.5 hours of general use on battery power, CEO Lis Su said Tuesday. Intel demonstrated its next-generation Alder Lake processor coming later this year. It adopts an approach long used in Arm chips, a combination of fast processing cores and slower, power-efficient cores.

It's been difficult to crack into the PC ecosystem of component makers, software and PC makers, Segars acknowledged. He believes Arm's combination of performance and energy efficiency ultimately will let it claim significant market share.

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Apple apparently expects 2021 to be a truly great year for the smartphone market, with the iPhone obviously to spearhead sales worldwide, so the company has reportedly asked suppliers to build no less than 230 million units for the entire year

This is an increase of 20 percent versus the current year, which as we know already, has been quite a nightmare for everybody, not just for the smartphone industry.

However, Apple apparently believes the whole thing would come back to normal next year, so it wants suppliers to build more iPhones, with these numbers said to include both existing and new iPhones.

What this means is Apple also expects the upcoming iPhone 13 to sell strong, with people familiar with the matter recently suggesting no delay would hit the 2021 generation and all models would be here on time, according to the typical schedule.
Strong 5G iPhone demand

A report from Nikkei reveals Apple wants to produce no less than 96 million iPhones in the first half of 2021 alone, which is a year-on-year increase of 30 percent. The company sees strong sales for its 5G models, and Apple wants to make sure it has enough iPhones to meet the demand.

“The planned production for the next quarter and the following quarter have been decided and the outlook is quite bright,” an Apple supplier executive was quote as saying by Nikkei. “The iPhone 12 Pro, and iPhone 12 Pro Max are especially stronger than we estimated, while the demand for iPhone 12 is in line with the forecast, but iPhone 12 mini is a bit sluggish,” the person added.

Needless to say, Apple has remained completely tight-lipped on everything, so for the time being, just take the aforementioned numbers with a healthy dose of skepticism. On the other hand, Apple’s ambitions aren’t necessarily surprising, especially because the company is betting big on its 5G device lineup in the long term.

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The iPhone 13 lineup is unlikely to include a foldable model, but on the other hand, people familiar with the matter are now hinting at a more advanced display technology Apple could embrace for the entire generation.

Korean website The Elec writes that Apple will use OLED panels with low-power LTPO technology on the iPhone, and this would essentially include a more efficient backplane that can control pixels individually.

What this means is the technology overall is much more power efficient, so the battery life of the iPhone would eventually be increased, but at the same time, such an upgrade also allows for other capabilities, including a 120Hz refresh rate.

Needless to say, phones with this refresh rate are already available on the market, but Apple will obviously make quite a big deal about it once it makes its way to the iPhone.

And if you think Apple wants to reinvent the wheel, there’s more. The same report indicates that one of the features eventually going live on the iPhone 13 is an always-on system allowing for certain information to be displayed on the screen 24/7.
The always-on display

If you think you’ve heard of always-on before, it’s because this is a feature widely used in the Android ecosystem, with plenty of devices already boasting such capabilities, including Samsung’s smartphones.

So yes, Apple does want to reinvent the wheel, though it goes without saying such an upgrade would really come in handy on the iPhone.

In the meantime, Apple is still discussing with its suppliers about the ways to make it happen, and Samsung and LG are likely to remain the preferred partners for OLED displays even on the iPhone 13.

Time will tell if Apple is ready for such upgrades on the next iPhone, and expect more information to surface in the coming months.

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