AMD plans to acquire unknown semiconductor company Xilinx for $ 35 billion, making it its largest acquisition to date.
The deal is expected to close by the end of 2021 and will serve to boost competition with Intel and Nvidia in the highly lucrative data center market.
Xilinx specializes in Field Programmable Gate Arrays (FPGAs) – a type of semiconductor that can be changed even after they have been implemented. This level of programmability often makes them slower than GPUs or CPUs, but also much more versatile.
Being so versatile, the Xilinx technology can be used almost anywhere in a data center, which is great when you’re faced with multiple tasks. For example, a cloud storage company has a different workload than a VPN service, website builder platform, or video conferencing service.
AMD’s chiplet design strategy therefore appears to be a natural fit to expand Xilinx’s footprint in the data center ecosystem.
Acquisition of AMD Xilinx
The acquisition of Mellanox and Arm by Nvidia may have prompted AMD to move ahead of Xilinx sooner rather than later, to avoid a future where the data center is dominated by its rivals.
“There are a number of areas where we are very strong, and we will be able to partially accelerate adoption of the Xilinx product family,” explains Lisa Su, CEO of AMD.
And there are some areas where [Xilinx CEO] Victor [Peng] is very strong, and we think we will be able to accelerate some of the AMD products into those markets, ”she added.
The announcement saw AMD shares fall 4% in pre-market trading, while Xilinx shares were up 12%.
The deal comes nearly 14 years after AMD’s acquisition of Canadian graphics powerhouse (and former Nvidia nemesis) ATI technologies.
Through Reuters, Wall Street Journal