Advanced Micro Devices (AMD) is one of the major chipset manufacturers across the globe. The company has just completed the largest acquisition in the semiconductor business history, acquiring Xilinx for about $50 billion. This news just comes after Nvidia’s decision to not go ahead with its Arm acquisition due to a number of regulatory hurdles. Also Read - Dell launches new G15 AMD gaming laptops with up to NVIDIA RTX 3060: Check full pricing, features
With the help of this acquisition, AMD is looking to bolster its product portfolios, increase its customers and market expertise. Also Read - AMD brings affordable Ryzen 4000 and Ryzen 5000 series processors for PC build
To recall, the deal was originally announced back in October 2020, originally valued at $35 billion. However, due to the surge in AMD’s stock value, the price tag for the deal was pushed up automatically. After the announcement was made public, AMD shares surged over 4 percent. Also Read - You can now install Windows on your Steam Deck
With the completion of this acquisition, AMD now has over 15,000 engineers and a completely outsourced manufacturing strategy relying on Taiwan Semiconductor Manufacturing (TSMC). Now, Xilinx will become the Adaptive and Embedded Computing Group (AECG), led by former Xilinx CEO Victor Peng. AECG will focus on driving leadership FPGA and Adaptive SoC and embedded product roadmaps for its core markets.
Both the companies expect the deal to generate $300 million in cost savings. This acquisition will also help AMD increase its fighting power against its main competitor, Intel.
“The acquisition of Xilinx brings together a highly complementary set of products, customers and markets combined with differentiated IP and world-class talent to create the industry’s high-performance and adaptive computing leader. Xilinx offers industry-leading FPGAs, adaptive SoCs, AI engines and software expertise that enables AMD to offer the strongest portfolio of high-performance and adaptive computing solutions in the industry and capture a larger share of the approximately $135 billion market opportunity we see across cloud, edge and intelligent devices,” AMD CEO Lisa Su said in a press statement.