AMD Acquires Fabless Semiconductor Giant Xilinx in All-Stock Deal Valued at $35 Billion

[Tsing]

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...

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[Uvilla]

Cool, cool.
I think it makes sense.

 

[Stoly]

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

 

[Paul_Johnson]

That is quite the turn around for AMD from where they were a few years ago.

 

[Stoly]

BTW since the deal is 35b in stock, wouldn't that mean that Xilinx is actually buying AMD?

 

[Brian_B]

Xilinx makes the chips for Mellanox, which is owned by nVidia.

 

[Burticus]

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.

 

[Marees]

BTW since the deal is 35b in stock, wouldn't that mean that Xilinx is actually buying AMD?

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

 

[Paul_Johnson]

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

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

 

[Uvilla]

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.

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.

 

[Stoly]

At least it won't take decades to make this one profitable.