Merger-and-acquisition activity in the semiconductor market continued to boom in late October when AMD announced it would acquire Xilinx in a $35 billion all-stock deal.
Xilinx specializes in programmable processors aimed at high-performance use cases like video file compression and digital encryption, and will help AMD compete with Intel in data centers. Both US firms also outsource the manufacturing of their chips, primarily to Taiwan, and use modular design principles, so there are immediate synergies to be seen in the deal.
“Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry’s high performance computing leader and partner of choice for the largest and most important technology companies in the world,” AMD President and CEO Lisa Su said in a statement.
“The Xilinx team is one of the strongest in the industry and we are thrilled to welcome them to the AMD family. By combining our world-class engineering teams and deep domain expertise, we will create an industry leader with the vision, talent and scale to define the future of high performance computing.”
Xilinx CEO Victor Peng will take the role of president, responsible for the Xilinx business and strategic growth initiatives when the companies are combined in 2021.
SOURCE Computer World
