Advanced Semiconductor Designer (AMD) said Monday it had completed its acquisition of Xilinx Inc in a record $ 50 billion chip industry deal, giving it an added edge in the core data center market.
The deal comes after Nvidia Corp. decided to abandon its plans to buy SoftBank’s Arm Ltd, citing regulatory hurdles.
AMD’s transaction proceeded with all the necessary approvals for the acquisition, the company said, according to Reuters.
AMD CEO Lisa Shu told Reuters that the two companies are similar between AMD processor technologies and the Xilinx system for chips and programmable field chips. “That was the focus when we talked to regulators around the world,” Shu said. He added that Arm was an important partner for AMD, but declined to say more about Arm’s possible next steps.
The deal, announced in October 2020, was initially valued at $ 35 billion, but the rise in the value of AMD shares raised the price, according to AMD.
Shares of AMD rose more than 4% on Monday. Other chip makers also won.
With the acquisition of Xilinx, Su told AMD that it will be able to increase its reach in key markets such as data centers where Xilinx has a strong network and presence of artificial intelligence, as well as in the 5G communications markets, automobile, industry, aerospace and defense. “These are all markets in which AMD had a very small presence and all of them also need high-performance computers,” he said.
AMD has long been Intel’s main competitor for CPUs in the PC business.
Su will lead the combined company as CEO, with Xilinx CEO Victor Peng as chairman of the newly formed Adaptive and Embedded Computing Group.
The companies expect the deal to provide $ 300 million in cost savings.
Source: Capital
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