AMD buys rival chipmaker Xilinx for $ 35 billion as competition with Intel intensifies

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US semiconductor designer Advanced Micro Devices (AMD) has agreed to buy Xilinx, another US chipmaker, in a $ 35 billion all-stock deal, he said Tuesday

The deal, which AMD plans to close in late 2021, would create a combined company with 13,000 engineers and a fully outsourced manufacturing strategy that relies heavily on Taiwan Semiconductor Manufacturing Co (TSMC)

Read more: Wall Street fears that Intel’s disappointing results are a sign that its terrible year will only get worse: « 2021 looks like a messy year »

Its main rival in the region, Altera Corp, was picked up by Intel for $ 16.7 billion in 2015 in what was then the largest deal ever by Intel

Xilinx also uses TSMC’s factories to manufacture its chips, with the two US companies using modular designs that allow them to swap out different parts of a chip to avoid delays

AMD’s Su to lead the merged company as Managing Director, with Xilinx CEO Victor Peng as President responsible for Xilinx operations and strategic growth initiatives Companies expect transaction to generate $ 300 million in cost savings

Bernstein analyst Stacy Rasgon said there was a risk that a major acquisition in an adjacent chip market could distract AMD’s leadership as Intel struggles to regain shares in market

“The problem would be that AMD has its own story, which is just starting to unfold. Why are you doing this now? Is it just opportunistic? Does it distract from the current story?”, A he said

Advanced Micro Devices, Xilinx, Intel, Stock, Integrated Circuit

World news – AU – AMD buys rival chipmaker Xilinx for $ 35 billion as it competes with Intel intensifies



SOURCE: https://www.w24news.com/news/amd-buys-rival-chipmaker-xilinx-for-35-billion-as-competition-with-intel-intensifies/?remotepost=475319

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