AMD’s $35 billion acquisition of Xilinx about to go through officially

AMD is about to formally own Xilinx, with the purchase clearing the final hurdle in China.

Tech companies are fond of buying one another in deals worth billions of dollars. However, sometimes, market regulators step in and halt the sale to prevent hurting competition or even protect national secrets. This has not been the case with AMD’s latest acquisition; its $35 billion purchase of Xilinx. The deal was announced in October 2020 and will be officially closed on February 14.

AMD has just obtained the Chinese regulatory approval, the last one it needs to wrap up the sale.

Xilinx develops highly flexible and adaptive computing platforms that enable rapid innovation across a variety of technologies – from the cloud to the edge to the endpoint. Xilinx is the inventor of the FPGA and Adaptive SoCs (including our Adaptive Compute Acceleration Platform, or ACAP), designed to deliver the most dynamic computing technology in the industry. It collaborates with its customers to create scalable, differentiated, and intelligent solutions that enable the future’s adaptable, intelligent and connected world.

Xilinx’s business is quite different from AMD’s despite the two being chip makers. This is why AMD is interested, but Xilinx will help it expand into a new kind of chip-making. However, Xilinx has already served many AMD customers who use their chips to run their data centers.

Apart from the connection mentioned above, the two companies have similar business models. Both are fabless chipmakers, so they do not manufacture their chips themselves. The most popular example of this business model is Apple, which doesn’t manufacture its own electronic devices but contracts them out to companies mainly in Asia.

In fact, Xilinx was one of the pioneers of the fabless business model.

However, with Xilinx now under its roof, AMD will better compete with its arch-rival, Intel. The American semiconductor maker had snapped up Altera, which was Xilinx’s biggest competitor, in 2015. The two FPGA companies will continue their rivalries under new owners when AMD fully takes control of Xilinx.

Here is AMD’s press release on the impending completed acquisition of Xilinx:

“AMD (NASDAQ: AMD) today announced that it has received approval from all necessary authorities to proceed with the acquisition of Xilinx, Inc. (NASDAQ: XLNX). 

“With the exception of the remaining customary closing conditions, all conditions to the transaction closing have been satisfied, and the company expects the transaction to close on or about February 14, 2022.

“AMD announced its intention to acquire Xilinx in an all-stock transaction on October 27, 2020. The transaction brings together two industry leaders with complementary product portfolios and customers, combining CPUs, GPUs, FPGAs, Adaptive SoCs, and deep software expertise to enable leadership computing platforms for cloud, edge and intelligent end devices.”

While AMD was successful with its acquisition of Xilinx, Nvidia wasn’t so fortunate with its own purchase of Arm. The deal, which was worth $40 billion, was scrapped with Arm pocketing over $1 billion in advance payment made by Nvidia. Nvidia’s competitors, including Microsoft and Google, vehemently opposed the deal, fearing that feared their trade secrets in Arm’s custody would fall into the hands of Nvidia, potentially causing them harm. Regulatory bodies in the US, EU and the UK also opened investigations to determine the possible fallout from the sale.

Arm is now preparing to go public under its owner, Softbank.

For more than 50 years, AMD has driven innovation in high-performance computing, graphics, and visualization technologies ― the building blocks for gaming, immersive platforms, and the data center. Hundreds of millions of consumers, leading Fortune 500 businesses and cutting-edge scientific research facilities worldwide, rely on AMD technology daily to improve how they live, work, and play. AMD employees worldwide are focused on building great products that push the boundaries of what is possible.

Written by HackerVibes

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