Image: AMD

AMD has officially echoed Intel and Altera’s partnership by acquiring Xilinx, a fabless semiconductor company that’s best known for inventing FPGAs (field-programmable gate arrays), programmable SoCs, as well as ACAP – an adaptive compute acceleration platform.

The deal (which cost $35 billion in stock) puts Xilinx’s flexible and adaptive technologies into the hands of AMD, which will undoubtedly be leveraging them to bolster its rapidly growing data center business.

According to recent comments by CEO Dr. Lisa Su, the partnership makes perfect sense because of how strongly their engineering philosophies line up. Both companies seem to have a thing for modular design and are huge customers of TSMC.

Original Press Release

AMD (NASDAQ: AMD) and Xilinx (NASDAQ: XLNX) today announced they have entered into a definitive agreement for AMD to acquire Xilinx in an all-stock transaction valued at $35 billion. The combination will create the industry’s leading high performance computing company, significantly expanding the breadth of AMD’s product portfolio and customer set across diverse growth markets where Xilinx is an established leader. The transaction is expected to be immediately accretive to AMD margins, EPS and free cash flow generation and deliver industry-leading growth.

The acquisition brings together two industry leaders with complementary product portfolios and customers. AMD will offer the industry’s strongest portfolio of high performance processor technologies, combining CPUs, GPUs, FPGAs, Adaptive SoCs and deep software expertise to enable leadership computing platforms for cloud, edge and end devices. Together, the combined company will capitalize on opportunities spanning some of the industry’s most important growth segments from the data center to gaming, PCs, communications, automotive, industrial, aerospace and defense.

“Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry’s high performance computing leader and partner of choice for the largest and most important technology companies in the world,” AMD President and CEO Dr. Lisa Su said. “This is truly a compelling combination that will create significant value for all stakeholders, including AMD and Xilinx shareholders who will benefit from the future growth and upside potential of the combined company. The Xilinx team is one of the strongest in the industry and we are thrilled to welcome them to the AMD family. By combining our world-class engineering teams and deep domain expertise, we will create an industry leader with the vision, talent and scale to define the future of high performance computing.”

“We are excited to join the AMD family. Our shared cultures of innovation, excellence and collaboration make this an ideal combination. Together, we will lead the new era of high performance and adaptive computing,” said Victor Peng, Xilinx president and CEO. “Our leading FPGAs, Adaptive SoCs, accelerator and SmartNIC solutions enable innovation from the cloud, to the edge and end devices. We empower our customers to deploy differentiated platforms to market faster, and with optimal efficiency and performance. Joining together with AMD will help accelerate growth in our data center business and enable us to pursue a broader customer base across more markets.”

With a combined team of 13,000 talented engineers and over $2.7 billion of annual1 R&D investment, AMD will have additional talent and scale to deliver an even stronger set of products and domain-specific solutions.

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10 Comments

  1. doesn’t xilinx build the FPGAs for the Gsync monitors? Probably not, just wondering…

    I guess this will help AMD with developing IoT devices… using nvidiARM :LOL::LOL:

  2. Not sure I understand why this is worth 35 billion with a freakin B. But what do I know, I’m not Lisa Su’s personal assistant.

  3. [QUOTE=”Stoly, post: 21970, member: 1474″]
    BTW since the deal is 35b in stock, wouldn’t that mean that Xilinx is actually buying AMD?:LOL::LOL:
    [/QUOTE]

    This is a stock transfer deal.

    AMD is paying premium for Xilinx’s share. Xilinx is not paying any premium to acquire AMD’s share.

    So I guess it is AMD acquiring Xilinx.

    Btw Xilinx has an operating margin >65% while AMD’s is <45%.
    So AMD should eventually make money.

    The biggest short term threat is that Broadcomm or Qualcomm could attempt a hostile takeover of Xilinx as Xilinx is a very profitable company

  4. [QUOTE=”Marees, post: 22032, member: 1536″]
    This is a stock transfer deal.

    AMD is paying premium for Xilinx’s share. Xilinx is not paying any premium to acquire AMD’s share.

    So I guess it is AMD acquiring Xilinx.

    Btw Xilinx has an operating margin >65% while AMD’s is <45%.
    So AMD should eventually make money.

    The biggest short term threat is that Broadcomm or Qualcomm could attempt a hostile takeover of Xilinx as Xilinx is a very profitable company
    [/QUOTE]

    The last time one tried a hostile take over the GOV nipped that in the bud.

  5. [QUOTE=”Burticus, post: 21988, member: 297″]
    Not sure I understand why this is worth 35 billion with a freakin B. But what do I know, I’m not Lisa Su’s personal assistant.
    [/QUOTE]
    Hehe.. its hard to stop thinking with logic and reason… But I don’t think US’s high finances and stock market has been grounded in any reality for years. Its all fuzzy math and funny money.

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