Investing.com -- Qualcomm said it plans to use new chip technology developed for data centers in smartphones, which would improve how artificial intelligence runs on mobile devices. Executive Vice President Durga Malladi shared the information in an interview with Semafor.

The chipmaker, which supplies smartphones and wearable devices, entered the data center chip industry this week with its announcement of new data center chips. The sector faces supply shortages and strong competition.

"What starts in data centers is not going to end there," Malladi said.

Qualcomm is talking with manufacturers of smartphones, personal computers, and cars about its new data center technology portfolio, Malladi said. The company's High Bandwidth Compute architecture stacks chips vertically instead of placing them side by side, which puts memory and compute closer together. This design improves data speed and flow.

The first generation of the new architecture will launch in data centers next year, with commercial availability expected in 2028. Malladi did not say when Qualcomm will add the new technology to other devices.

Chip stacking technology exists mainly in data centers rather than smartphones. When it reaches handheld devices, users will be able to run more AI models locally and operate agents in an "always on" mode without draining the battery. Qualcomm had fallen behind in data center technology for several years but holds a strong position due to its long history with smartphone chips.