Technology

AMD buys competitor Xilinx for $ 35 billion

AMD announces its largest acquisition, buying Xilinx for $ 35 billion. The semiconductor group thus gets its hands on a competitor. The latter presented financial results and forecasts that exceeded expectations.

The acquisition of Xilinx, which AMD expects to complete in late 2021, creates a new group of 13,000 engineers. Like AMD, it will be based on a 100% outsourcing chip manufacturing strategy for several years, largely dependent on TSMC.

XD’s proposed Xilinx buyout will see Xilinx shareholders receive approximately 1.7 AMD shares for each of their securities, valued at $ 143 or 24.8% above the closing price. The current shareholders of AMD will hold 74% of the capital of the new group and those of Xilinx will hold 26%. Lisa Su will lead the new ensemble. His Xilinx counterpart, Victor Peng, will be responsible for Xilinx’s legacy businesses and new growth initiatives under the title of Chairman. The two companies hope their combination will save a total of $ 300 million in costs.

AMD has long been Intel’s main competitor in the computer processor market. The CEO, who has been in office since 2014, is relying on the more dynamic segment of chips for data centers.

The group has since taken a lead over Intel in terms of processor performance, which has allowed them to increase their market share. Today it holds almost 20% of the world market.