AMD is said to be in talks to buy rival Xilinx in a $ 30 billion deal


Photographer: David Paul Morris / Bloomberg

Advanced is in discussion to purchase Advanced Micro Devices Inc. According to people familiar with the matter, Xilinx Inc. in an acquisition.

The deal could happen early next week, although things remain in flux, with people saying the private deal will not be discussed.

A combination with Xilinx will give the greater part of the pieces needed to break AMD CEO Lisa Su Intel Corp. choke on profitable market for data center computer components. It will follow moves by the opponent Nvidia Corp., which bought Melanox Technologies Ltd. and aims to use its pending acquisitions Arm Limited to grab more of that business.

Acquiring Xilinx, which produces programmable chips for wireless networks, will also help AMD expand into a new market, as telecom carriers spend billions to build fifth-generation, or 5G, networks.

Read more: NXP beat, see chip stock again on AMD-Xilinx takeover report

What Bloomberg Intelligence Says

AMD’s interest in ExilinX is both a shield and a bulwark against Intel’s diversified data-center computing assets, Nvidia’s GPUs, the assets of Melanox and the possible purchase of a UK-based branch. Xilinx’s FPGAs will expand AMD’s computing diversity, widening its CPU and GPU capability in AM and networking. The deal may also be financially prosperous.

– Anand Srinivasan and Marina Girgis, analysts

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A Xilinx takeover is accelerated in 2020 which promotes an industry consolidation. Deal activity in the chip sector has increased this year, including Nvidia’s proposed $ 40 billion purchase of Arm. With both possible acquisitions, pending or completed semiconductor deals will be valued at $ 100 billion in 2020, the most in at least 10 years, according to data compiled by Bloomberg.

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