AMD to acquire Xilinx for $ 35 billion

Semiconductor design company (AMD) announced Tuesday that it will acquire Xilinx for $ 35 billion, increasing competition with Intel in the data center chip market.

AMD expects the transaction to be completed by the end of 2021. A joint venture of 13,000 engineers has been established, entirely based on the Taiwan Semiconductor Industry Corporation (TSMC) general manufacturing strategy.

The two US companies used a smarter way to gain market share from Intel, which was having trouble by manufacturing it in-house.

In the processor arena in the computer industry, AMD has long been Intel's main competitor.

Since 2014, AMD has focused on the challenge Intel Corporation faces in making the fast-growing data centers that support internet-based applications and services, and the rise of artificial intelligence is driving 5G communications networks.

Xilinx also used programmable processors to break into data centers and speed up special tasks, such as: b- compress videos or provide digital encryption.

Intel won Xilinx's main competitor, Altera, for $ 16.7 billion in 2015. It was the largest deal in Intel's history at the time.

The connection comes after Intel's manufacturing technology lagged TSMC for many years and outpaced Intel by far with a more powerful chipset.

Xilinx also uses TSMC (TSMC) plants to make its chips. AMD and Xilinx use a modular architecture that allows different chips to be swapped out to avoid problems.

Under the agreement, Xilinx shareholders will receive approximately 1.7 AMD common shares per Xilinx ordinary share of $ 143 per share.

AMD shareholders own approximately 74% of the combined company, while Xilinx shareholders own the remaining 26%.

Lisa Su will lead the combined company as CEO, and Victor Bing is the president responsible for Xilinx's business and strategic growth plans.

On Tuesday, AMD reported a profit of $ 2.8 billion, beating Wall Street's forecast of $ 2.57 billion.

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