Another mega-transaction in the processor industry: AMD buys rival company Xilinx for $ 35 billion – EN



[ad_1]

Advanced Micro Devices (AMD), the world’s second-largest manufacturer of computer processors, will buy rival company Xilinx for $ 35 billion, writes the Wall Street Journal. There have been many mega-transactions in the processor industry over the past few years, the most recent example being the announcement of the $ 40 billion acquisition of ARM Holding by Nvidia. The pandemic has led to an increase in demand for chips in some areas and a decline in others.

Now Advanced Micro Devices has reached an agreement with Xilinx and, if approved by the authorities, will take over a rival company with which it has a lot in common, but with which it integrates.

AMD has approximately 10,000 employees and Xilinx, approximately 4,000. AMD, while far from Intel in terms of employee numbers and revenues, has had very good years and gained market share at the expense of Intel which had production problems.

Advanced Micro Devices has a market capitalization of $ 97 billion, three times that of a year ago. At the beginning of 2016, AMD had a capitalization of less than two billion dollars.

Xilinx creates special processors as they allow users to reprogram them after their production and this flexibility is useful in areas where large production volumes are not needed and where various prototypes need to be made quickly.

Xilinx is strong in areas where AMD is under-represented, such as the telecom and defense industries. Xilinx processors are also used in Lockheed Martin’s F 35 aircraft, but also in 5G infrastructure.

Last quarter, AMD posted sales of $ 2.8 billion and Xilinx of $ 767 million.

.

[ad_2]
Source link