AMD closes largest-ever chip merger with $49bn Xilinx acquisition
$49bn acquisition was originally announced in October 2020 and will create a ‘high-performance and adaptive computing leader’, AMD claims
AMD has officially completed its acquisition of semiconductor manufacturer Xilinx for $49bn in a move which represents the largest chip deal ever recorded.
The acquisition was originally announced in October 2020, with AMD claiming the two companies will create the industry's "high-performance and adaptive computing leader with significantly expanded scale".
"The acquisition of Xilinx brings together a highly complementary set of products, customers and markets combined with differentiated IP and world-class talent to create the industry's high-performance and adaptive computing leader," said AMD president and CEO Dr. Lisa Su.
"Xilinx offers industry-leading FPGAs, adaptive SoCs, AI engines and software expertise that enable AMD to offer the strongest portfolio of high-performance and adaptive computing solutions in the industry and capture a larger share of the approximately $135bn market opportunity we see across cloud, edge and intelligent devices."
The deal comes at a time when chip shortages are impacting tech companies across the world, with demand continuing to surpass available supply.
Chip stocks have surged since the start of the pandemic and the $49bn all-stock deal is much higher than the initial $35 billion figure due to the growth of AMD and Xilinx since then.
Former Xilinx CEO Victor Peng will join AMD as president of the newly formed Adaptive and Embedded Computing Group (AECG).
"The rapid expansion of connected devices and data-intensive applications with embedded AI are driving the growing demand for highly efficient and adaptive high-performance computing solutions," he said.
"Bringing AMD and Xilinx together will accelerate our ability to define this new era of computing by providing the most comprehensive portfolio of adaptive computing platforms capable of powering a wide range of intelligent applications."