Qualcomm Inc. (NASDAQ:QCOM) stock slipped in premarket trading on Wednesday, even as the chip giant announced a major breakthrough in advanced semiconductor design from India.

Qualcomm has completed the tape-out of a cutting-edge 2nm chip design, marking a significant milestone in advanced semiconductor work carried out in India.

The company’s engineering teams across Bengaluru, Chennai, and Hyderabad played a pivotal role in this achievement.

This milestone aligns with India’s push to expand its semiconductor ecosystem under the India Semiconductor Mission (ISM) 2.0, Business Standard reported on Monday.

What Tape-Out Means for India’s Semiconductor Ecosystem

In semiconductor development, “tape-out” refers to the finalization of a chip’s design before it’s sent for manufacturing.

While Qualcomm’s 2nm chip design will not be manufactured in India, this achievement highlights the country’s growing role in high-end design work.

India’s semiconductor ambitions are becoming more pronounced, with the government focusing on chip design, manufacturing, and packaging as part of ISM 2.0, which aims to build a competitive global semiconductor industry.

Mixed Last Quarter

Qualcomm reported its first-quarter earnings in February, showing strong performance despite some challenges.

The company posted record total revenue of $12.25 billion, up 5% year-over-year, exceeding the analyst consensus estimate of $12.18 billion.

The company’s QCT revenue reached a record $10.61 billion, driven by strong performance across key segments: handsets, automotive, and IoT.

QTL revenue also grew 4% year-over-year to $1.59 billion.

Adjusted earnings per share (EPS) came in at $3.50, beating the consensus estimate of $3.40.

Looking ahead, Qualcomm expects second-quarter revenue between $10.20 billion and $11.0 billion, slightly below the consensus estimate of $11.11 billion.

The company’s guidance is for second-quarter adjusted earnings per share of $2.45 to $2.65, versus a Street consensus estimate of $2.88.

The company said its handset outlook is impacted by memory supply constraints that are industry-wide.

“We are encouraged by end-consumer demand for premium and high-tier smartphones, and remain on track to achieve our fiscal 2029 revenue goals,” CEO Cristiano Amon said.

QCOM Price Action: Qualcomm shares were down 0.31% at $139.65 during premarket trading on Wednesday, according to Benzinga Pro data.

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