Qualcomm Confirms Completion of $3.1 Billion Modular Acquisition and Custom Silicon Wins for Q4 Revenue

Qualcomm Inc confirmed the completion of its acquisition of AI software company Modular Inc, valued at approximately $3.1 billion, marking a significant step in its strategic push toward AI-driven growth beyond mobile devices.

Acquisition of Modular Inc Completed

On July 28, 2026, Qualcomm closed its acquisition of Modular Inc. as disclosed in a Form 8-K and 10-Q filing, which detailed that the transaction was settled primarily through the issuance of around 18 million Qualcomm shares as consideration. A prospectus supplement filed on July 31, 2026 provided details on the resale registration of 17,826,566 shares issued in connection with the deal.

This acquisition underscores Qualcomm’s ongoing pivot toward building a presence in AI and data-center software capabilities, complementing its growing investor-day narrative about non-handset revenue expansion.

Custom Silicon Wins to Drive December Quarter Revenue

During its fiscal Q3 2026 earnings conference call, Qualcomm’s CEO revealed that the company has secured two near‑term custom silicon contracts, with wafer production already underway. These “wins” are expected to begin generating revenue in the December quarter. The company also confirmed that the tape‑out of its HBC Gen 1 custom chip is complete.

These developments reinforce Qualcomm’s strategic transition to custom silicon and data-center solutions, aligning with its broader Agentic AI and hyperscaler engagement goals.

Strategic Implications for Investors

Together, the Modular acquisition and the confirmed custom silicon orders point to Qualcomm strengthening its foothold in AI and data-center markets—spaces where it sees long-term growth. The Modular deal brings software capabilities into Qualcomm’s portfolio, while the custom silicon contracts indicate early traction in hyperscaler partnerships.

Investors should monitor upcoming financial reporting for how these initiatives contribute to revenue and margins. Key factors will include how quickly custom silicon orders scale and how Modular’s assets are integrated into Qualcomm’s ecosystem.

What’s Next for Qualcomm?

Watch for updates in Qualcomm’s December‑quarter results, expected to reflect the initial revenue from custom silicon. Additional filings or investor communications may reveal further details on customer names, revenue contribution timelines, and integration strategy for Modular.