00:00Bloomberg's chip reporter, Ian King, just broke that story.
00:02The market's responding, Qualcomm up 7%, a fresh record high.
00:07You remember when Cristiano was on the show a few weeks ago
00:09and he wouldn't say who the customer was?
00:11He was saying, oh, it's a hyperscaler.
00:13It's ByteDance.
00:14This is, according to our reporting, yes,
00:16and we believe there's more to come,
00:18that this is kind of a breakthrough for them
00:20in at least one area of this market.
00:23And according to our reporting,
00:25we expect more to come on the customer list.
00:27Ian, it's millions of ASICs.
00:30And so where and why does a company like ByteDance
00:34come to Qualcomm at this moment?
00:36Yeah, I mean, Qualcomm has a long history in the chip industry.
00:40It's very skilled.
00:42It was a pioneer of something called SOC, System on Chips,
00:45which is putting a lot of components together
00:46on one piece of silicon.
00:48And it's done very well in a very high-volume market.
00:51So obviously it has a lot of skills that would be useful
00:54if you are trying to get your own solutions
00:56to market in volume quickly.
00:57So this is what's interesting about the ASICs part, right?
01:00Qualcomm is a fabulous chip maker.
01:03But essentially, instead of having its chip,
01:06it's doing it on behalf of a customer,
01:08kind of how Broadcom's done for various people,
01:10for example, TPU.
01:12How does that work?
01:13Yeah, I mean, the way it looks at the moment,
01:15and we'll get more when Qualcomm does its Analyst Day
01:18coming up this summer,
01:19they're pursuing two strategies,
01:21their own chips, their own processors,
01:22so rivals to NVIDIA's products, if you like,
01:25but also the Broadcom strategy as well,
01:28which is, look, you've got your ideas,
01:29you've got your designs,
01:30but you don't really know quite how to get this done
01:33in the kind of volumes that you need to do.
01:35Give it to us.
01:35We'll get it across the line for you.
01:37That's kind of the role that they're looking at here.
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