Qualcomm has no plans to abandon its efforts to create processors for data centers, the company’s president, who oversees the chip division, said.

Qualcomm, the largest maker of chips in mobile phones, last year launched chips that use technology from Softbank Group Corp‘s ARM Holdings to power the workhorse computer servers behind cloud-based services such as social networks.

Qualcomm’s push to enter the data center market puts it in direct competition with Intel Corp, which dominates data centers and now draws half of its revenue from servers and other “data-centric” chips.

But in May, Bloomberg reported that Qualcomm was exploring whether to sell or shut down the server chip unit.

Qualcomm President Cristiano Amon told Reuters on Monday that the chipmaker is making staff reductions in the unit but intends to keep operating it, albeit with a narrower focus on large internet companies in the United States and China.

“We are not looking at strategic options. We are not selling. We are still focused on it,” Amon told Reuters.

San Diego-based Qualcomm declined to say whether it had considered selling the server chip unit at some point in the past. The company instead pointed to an April earnings call in which Chief Executive Officer Steve Mollenkopf said Qualcomm was considering cost-cutting options in areas that are not central to Qualcomm’s business, which overwhelmingly comes from selling chips and licensing technology for mobile phones.

Qualcomm President Cristiano Amon told Reuters on Monday that the chipmaker is making staff reductions in the unit but intends to keep operating it, albeit with a narrower focus on large internet companies in the United States and China.

“We are not looking at strategic options. We are not selling. We are still focused on it,” Amon told Reuters.

San Diego-based Qualcomm declined to say whether it had considered selling the server chip unit at some point in the past. The company instead pointed to an April earnings call in which Chief Executive Officer Steve Mollenkopf said Qualcomm was considering cost-cutting options in areas that are not central to Qualcomm’s business, which overwhelmingly comes from selling chips and licensing technology for mobile phones.

Source: Tech CNBC
Qualcomm chip chief says the company is still focused on data centers: 'We are not selling'