Creating the Industry’s High-Performance Computing Leader – AMD to Acquire Xilinx

By: SiliconExpert on October 28th, 2020

On October 27, 2020, AMD and Xilinx announced that they have entered into a definitive agreement for AMD to acquire Xilinx for $ 35 billion US dollars with a combined enterprise value of approximately $135 billion.

The transaction has been unanimously approved by the AMD and Xilinx Boards of Directors.  However, the acquisition is subject to approval by AMD and Xilinx shareholders, certain regulatory approvals, and other customary closing conditions, which is expected to close by the end of the calendar year 2021. Until close, the parties remain separate, independent companies.

AMD is looking to acquire FPGA-maker Xilinx as part of the battles with direct competitor Intel Corp in the data center chip market.  In 2015, Intel entered a similar acquisition when they purchased Altera, Xilinx’s main competitor, for $ 16.7 billion.

Acquisition Benefits:

  • Expands AMD’s rapidly growing data center business.
  • The combination will create the industry’s leading high-performance computing company.
  • The combined companies will capitalize on opportunities spanning some of the industry’s most important growth segments from the data center to gaming, PCs, communications, automotive, industrial, aerospace, and defense
  • AMD will offer the industry’s strongest portfolio of high-performance processor technologies, combining CPUs, GPUs, FPGAs, Adaptive SoCs, and deep software expertise to enable leadership computing platforms for cloud, edge, and end devices
  • The deal would broaden AMD’s business portfolio into chips for markets like 5G communications and automotive electronics.
  • Expanding the breadth of AMD’s product portfolio and customer set across diverse growth markets where Xilinx is an established leader.
  • Customers will now be empowered to deploy differentiated platforms to market faster, and with optimal efficiency and performance.

Accelerate growth in data center business and pursue a broader customer base across more markets.

What is the Impact on Your Business?

Mergers and Acquisitions are inevitable, SiliconExpert has the solutions to help you navigate the impact of these acquisitions.  Contact us for a custom analysis on your supply chain impacts.

For more details on this acquisition, please visit:

https://ir.amd.com/news-events/press-releases/detail/977/amd-to-acquire-xilinx-creating-the-industrys-high

https://www.nytimes.com/2020/10/27/technology/amd-xilinx-35-billion-stock-deal.html

 

October 28, 2020, by Nader Yousef