Qualcomm Incorporated, a leader in wireless telecommunications, has announced a strategic takeover of British semiconductor company Alphawave, valued at $2.4 billion (£1.8 billion). The acquisition is indicative of the ongoing difficulties faced by the London Stock Exchange in retaining large technology companies amidst a growing preference for U.S. listings that offer superior liquidity and valuation.
Alphawave, known for its high-speed connectivity technology utilized in data centers and artificial intelligence applications, has been a noteworthy player in the UK’s semiconductor sector since its public debut in 2021. The deal, which offers Alphawave shareholders £1.83 per share, received a recommendation from the company’s board following extensive discussions. If approved by shareholders, the transaction is slated for completion in the early months of 2026.
The acquisition reinforces a troubling trend for the London market, where several high-profile technology entities that went public in 2021—often seen as emblematic of a revival in the UK tech scene—are choosing to either leave the exchange or transition their listings to the U.S. The recent moves by other technology firms echo a growing sentiment that U.S. markets provide better opportunities for growth.
The online payments firm Wise announced its plans to relocate its primary share listing to the United States last week, while food delivery service Deliveroo accepted a £2.9 billion acquisition by American rival DoorDash earlier this year. Similarly, cybersecurity firm Darktrace accepted a $5.3 billion buyout by U.S.-based private equity firm Thoma Bravo in 2022. These moves underline a significant shift away from London, with companies across multiple sectors acknowledging a preference for American markets that offer higher capital accessibility and a more robust investor base.
Beyond technology, leading organizations in various industries have initiated similar transitions. Construction equipment rental company Ashtead is now aligning its interests with U.S. markets after previously signaling its intent to move. Other notable firms making similar decisions include Flutter Entertainment and building materials supplier CRH. In a further blow to London’s financial reputation, drug manufacturer Indivior recently announced its plan to drop its secondary London listing after switching its main stock listing to the U.S. last year.
Alphawave’s trajectory has been particularly revealing. After listing at 410p per share in 2021, the company’s stock has largely traded below its initial public offering price. This decline highlights the pressures faced by UK-listed technology firms, which struggle to match the robust valuations offered in established U.S. markets. The executives at Alphawave regard Qualcomm’s acquisition as a strategic opportunity that will allow them to enhance their product range, expand their customer base, and bolster technological capabilities.
Qualcomm’s CEO, Cristiano Amon, has emphasized the strategic alignment of the two companies, noting that Alphawave’s cutting-edge wired connectivity technologies complement Qualcomm’s existing central processing units (CPUs) and neural processing units (NPUs). The integration aims to propel advancements in connected computing performance, particularly in high-growth areas such as data center infrastructure.
Under the terms of the takeover agreement, Alphawave shareholders are afforded the option to exchange their shares for 0.01662 of a new Qualcomm share, providing another avenue for stakeholders to participate in the combined entity’s future endeavors.
In a parallel development, UK-based quantum computing startup Oxford Ionics has also attracted attention following its agreement to be acquired by U.S. firm IonQ for $1.1 billion. Founded by physicists Chris Ballance and Tom Harty in 2019, Oxford Ionics is spun out from the prestigious University of Oxford and aims to enhance quantum computing capabilities. The retention of both founders post-acquisition suggests a commitment to maintaining continuity and growing IonQ’s technological leadership in the quantum space. The company’s shares, listed in New York, have surged in value, highlighting the potential for robust market performance.
As evidenced by these recent developments, the choices made by technology firms reflect broader market trends. The shift towards U.S. markets underscores a diminishing confidence in London’s capability to support high-growth businesses, particularly in the technology sector. Observers speculate that the increasing pressures could prompt further discussions about how the UK can adapt and innovate to ensure its attractiveness as a destination for tech companies to raise capital and grow.
The ongoing evolution of the tech landscape underscores the importance of understanding investor sentiments and market dynamics. Analysts are closely monitoring these transitions, as they hold significant implications for both the UK economy and its technological capabilities for the foreseeable future.