AMD confirmed to have acquired Xilinx for $50 billion. The company is trying to pave a better position in the data center market. The transaction in the new deal is said to has been equipped with all the required approvals.
Regulatory hurdles may sometime make acquisition a tough thing as Nvidia has recently faced while buying SoftBank-owned Arm Ltd. The company lastly reciprocated by abandoning the plans to buy the company.
AMD CEO Lisa Su said their processor technologies and field programmable chips of Xilinx are complementary to each other in their core business. This was one of the reasons for the company to talk with regulatory authorities in several countries.
Arm Ltd. was an important partner to the company and Su declined to comment on its future possibilities with it.
The deal with Xilinx was first announced in late 2020 and the value was $35 billion. A rise in the stock value of AMD pushed upward the price tag. The share prices lately moved up by 4 percent. The market seems favorable as gains were simultaneously noticed with other chipmakers.
Su added that the company will try to increase the breadth of Xilinks gradually in the key markets including data centers, AI presence, 5G communications, industrial, defense, aerospace and automotive. AMD had little presence in most of the markets and requires high-performance computing.
Lately, AMD hasbeen intensifying its battle with Intel with respect to the data center market and combined with Xilinx it now has over 15,000 engineers. The company has simultaneously outsourced the manufacturing part completely to a Taiwan-based company.
Both the companies have struggled with the internal manufacturing units but benefited from their nimble approaches to getting the market share.
AMD is known for being the rival of Intel with respect to CPUs in personal computers.
Meanwhile, it is learned Su will be leading the combined company as chief executive and the Xilinx CEO is to serve the newly formed group as president.