In what could be contemplated as a flabbergasting move from the American multinational semiconductor designer AMD (Advanced Micro Devices Inc.) aimed at taking on its rivals in the high profit-margin data-centre business, the Santa Clara, CA-based US chipmaker was looking to a $35 billion all-stock takeover bid for its peer Xilinx, ratcheting up heats in the US semiconductor market.
On top of that, the $35 billion all-stock takeover deal for Xilinx what analysts said was largely targeted at taking on AMD rival Intel Corp., would create an entity having 13,000 engineers with a completely stand-alone outsourced manufacturing strategy that relies heavily on Taiwan Semiconductor Manufacturing Co.
Ltd, while AMD said that the deal was expected to close by end-2021.
AMD to purchase Xilinx to muscle up data centre business
In point of fact, the Santa Clara-based American multinational chipmaker had said in a statement on Tuesday that it was going to purchase its American peer Xilinx at an all-stock $35 billion deal, which in effect would more likely to bolster both of the companies’ footing into the data-centre business, while several analysts were quoted saying that the deal would provide the merged entity with an interesting window of opportunity to grab market share from Intel Corp., which had been struggling with its internal manufacturing that led to a delay of at least six months for its next-generation chips.
In factuality, AMD had long been a major rival for Intel Corp. in Central Processing Unit (CPU) chips for personal computers’ market. Meanwhile, as Xilinx had also been laying the groundworks for tapping into the data centre business with its programmable processors which were expected to speed up specialized processes or tasks, AMD Chief Executive Lisa Su said to the reporters following the announcement, “There are some areas where we’re very strong, and we will be able to accelerate some of the adoption of the Xilinx product family.
And there are some areas where (Xilinx CEO) Victor (Peng) is very strong, and we believe that we’ll be able to accelerate some of the AMD products into those markets. ”