TLDRs;
- Qualcomm (QCOM) stock rose 0.83% after announcing the acquisition of open-source hardware pioneer Arduino.
- Arduino will remain independent, retaining its brand, tools, and support for multiple chipmakers.
- Qualcomm plans to launch the Uno Q board, powered by its Dragonwing AI chip for robotics and vision computing.
- The deal supports Qualcomm’s strategy to diversify beyond smartphones into AI, IoT, and industrial applications.
QUALCOMM Incorporated (NASDAQ: QCOM) gained 0.83% on Tuesday, trading at $166.84, following its announcement that it has acquired Italian hardware firm Arduino, a global leader in open-source electronics.
While financial terms remain undisclosed, the acquisition marks a pivotal step in Qualcomm’s diversification strategy beyond its traditional smartphone chip business.
Arduino, renowned for its programmable microcontroller boards and robust developer community of over 33 million users, has been a cornerstone in robotics, industrial design, and education. With this move, Qualcomm aims to tap into Arduino’s vibrant ecosystem, accelerating its entry into the fast-growing markets of artificial intelligence (AI), Internet of Things (IoT), and robotics.
According to Nakul Duggal, Qualcomm’s General Manager for Automotive, Industrial, and Embedded IoT, the acquisition is part of the company’s vision to build long-term relationships with innovators at the earliest stages of product design.
“You start to move towards prototyping, proof of concepts, and once you’re ready, you can go commercial, which is something we are obviously very familiar with,” Duggal said.
Arduino to Remain Independent Under Qualcomm
Despite the acquisition, Arduino will retain its brand identity, tools, and mission, operating as an independent subsidiary. Qualcomm emphasized that it plans no major changes to Arduino’s operations or community structure. Duggal reiterated that the company’s goal is to maintain Arduino’s open-source integrity.
This approach reflects Qualcomm’s understanding of the importance of Arduino’s community-driven innovation model, which relies on accessibility, transparency, and collaboration.
Maintaining independence allows Arduino to continue supporting a wide range of chipmakers including STMicroelectronics, NXP, and Renesas Electronics, while expanding its offerings to include Qualcomm technology.
Qualcomm’s New “Uno Q” Board to Drive AI Integration
One of the immediate outcomes of the deal will be the launch of Arduino’s first board powered by a Qualcomm processor, dubbed the Uno Q. The board, priced between $45 and $55, features Qualcomm’s Dragonwing QRB2210 chip. This processor can run Linux alongside Arduino’s software suite and supports computer vision, a capability critical for robotics and AI applications.
Traditional Arduino boards, which run on simpler microcontrollers, have limited AI capacity. The introduction of Qualcomm-powered boards could therefore represent a leap forward for robotics startups and AI developers looking for affordable prototyping solutions.
By enabling Arduino users to work directly with Qualcomm chips, the company hopes to create a seamless path from prototype to commercial production, positioning Qualcomm as the preferred chip supplier when those prototypes scale into real-world products.
Expanding Beyond Smartphones and Modems
The acquisition of Arduino underscores Qualcomm’s effort to diversify its revenue base. With smartphone sales stagnating and Apple transitioning to its own modem chips, Qualcomm is shifting focus toward industrial, automotive, and embedded AI markets.
In the most recent quarter, Qualcomm’s IoT and automotive divisions accounted for roughly 30% of its chip-related revenue, signaling strong growth potential in non-mobile sectors. The company has also been on an acquisition spree, recently purchasing Foundries.io and Edge Impulse, both of which specialize in embedded software and edge AI development.
Meanwhile, competitors like Nvidia have gained traction by selling developer kits for robotics and AI at consumer-friendly prices. Qualcomm’s move into Arduino’s open-source territory could help it compete more directly in that space by offering accessible, scalable hardware for small developers and research labs.
