Semiconductors, the American AMD buys Xilinx to beat Intel
US-based semiconductor developer Advanced Micro Devices has finalized the purchase of Xilinx. All the details
Major maneuvers in the semiconductor sector: for one operation that is starving another is concluded.
American semiconductor designer Advanced Micro Devices Inc said on Monday that it has finalized the acquisition of Xilinx Inc in a record chip deal worth approximately $ 50 billion, giving it an added edge in the key data center market.
The closing of the agreement comes in the wake of the decision of the giant Nvidia to give up the purchase project of the British Arm owned by SoftBank, due to regulatory obstacles.
Unlike the Nvidia-Arm transaction, the AMD transaction got all the necessary approvals. On January 27, the operation overcame the last obstacle: regulatory approval in China.
The deal, announced in October 2020 , was originally valued at $ 35 billion. But the increase in the value of AMD's shares raised the price, according to the American company.
All the details.
AMD CONQUERING XILINX
"The acquisition of Xilinx brings together highly complementary products, customers and markets with diversified intellectual property and world-class talent, creating the new leader in high-performance and adaptive computing," said Amd CEO Lisa Su in a statement. .
"Xilinx offers programmable logic devices (FPGAs), adaptive SoCs, AI engines and market-leading software skills, which will enable us to offer the best portfolio of adaptive and high-performace computing solutions in the industry to the market, as well as address a greater share of the approximately $ 135 billion of market opportunities that we foresee in the cloud, edge and smart devices ".
THE GOVERNANCE
Su will lead the combined company as CEO, while Victor Peng, CEO of Xilinx, will be president of the newly formed Adaptive and Embedded Computing Group.
THE STRATEGY
With the acquisition of Xilinx, Su said that AMD will be able to increase its breadth in key markets such as data centers where Xilinx has a strong network and artificial intelligence presence, as well as in the 5G, automotive, industrial communications markets. , aerospace and defense. “These are all markets where AMD has had very little presence and they all also need high-performance processing,” said Su.
WHAT XILINX DOES
Xilinx is a semiconductor company, but it specializes in a very different type of chip than the computer CPUs and GPUs that Amd has built its brand on.
Specifically, Xilinx manufactures programmable logic devices (FPGAs) and adaptive SoCs. They are the type of chip used for a wide range of industrial applications. Thanks to Xilinx's product portfolio, AMD will be able to expand into new markets and types of chips it does not already manufacture.
TO BEAT INTEL
American AMD is stepping up its battle with rival Intel in the data center chip market. AMD has long been Intel's main rival for central processing units (CPUs) in the personal computer industry. Not forgetting that Intel bought Xilinx's biggest rival in the FPGA space, Altera, in 2015.
As Reuters explains, the combined company will have more than 15,000 engineers and a fully outsourced manufacturing strategy that relies heavily on Taiwan Semiconductor Manufacturing Co Ltd (Tsmc).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/semiconduttori-lamericana-amd-compra-xilinx-per-battere-intel/ on Tue, 15 Feb 2022 09:57:56 +0000.