The Limited Times

Now you can see non-English news...

Computer chips: the American AMD buys its compatriot Xilinx for 35 billion dollars

2020-10-27T12:08:52.919Z


This transaction strengthens the manufacturer against its competitor Intel and creates a new entity worth around 135 billion dollars.


The American manufacturer of computer chips AMD (Advanced Micro Devices) announced on Tuesday the acquisition of the Californian company Xilinx for 35 billion dollars in shares.

An operation that allows it to grow its data center activity.

This transaction strengthens AMD against its competitor Intel and creates a new entity worth around 135 billion dollars, details a press release.

Read also: New technologies: China embarks on a race for autonomy

The chip sector is currently in turmoil as groups like Google, Amazon (AWS), Microsoft or Samsung, at the forefront of artificial intelligence, are looking for products that will increase the efficiency of their data centers in specific tasks.

Nvidia, the American manufacturer of graphics processors, thus broke its tire-lire in September, spending up to $ 40 billion to seize the British company Arm, producer of 95% of the microprocessors of mobile phones and tablets in the world.

The American semiconductor maker Analog Devices (ADI) also announced in July that it wanted to get its hands on its competitor Maxim Integrated for $ 21 billion.

Together, AMD and Xilinx "will

capitalize on the opportunities emerging from the industry's most important growth segments, from data centers to gaming, personal computers, communications, automotive, industrial, aerospace and defense,

”said the press release.

Xilinx stock leaps

A marriage with Xilinx, founded in 1984, allows it to become an important player in the niche of programmable processors (FPGA, Field-Programmable Gate Array).

Xilinx has in particular adaptive computing systems to meet the infrastructure requirements of 5G technology.

The group also owns an adaptive computing platform called Versal, which is based on the idea that acceleration hardware and software can change with workloads for data centers, automotive, industries. wired and defense for example.

The new group will have a total of 13,000 engineers and will spend more than $ 2.7 billion per year on research and development, which will allow it "

to provide an even stronger product offering and specific solutions

."

He estimates that he can save $ 300 million per year after 18 months.

Read also: Bad luck for the chipmaker Intel

The transaction, validated by the boards of directors of the two groups, has yet to receive the green light from the competition authorities.

It should be finalized by the end of 2021. On Wall Street, the action of Xilinx took 10% in electronic exchanges before the opening of the Stock Exchange while that of AMD dropped 4%.

Source: lefigaro

All news articles on 2020-10-27

You may like

Business 2024-02-20T19:02:12.962Z
Business 2024-02-22T07:43:14.305Z

Trends 24h

News/Politics 2024-03-28T06:04:53.137Z

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.