US tech manufacturer Advanced Micro Devices (AMD) announced on Tuesday it has reached a deal to acquire chipmaker Xilinx for $35 billion to consolidate its market position
MOSCOW (Pakistan Point News / Sputnik - 27th October, 2020) US tech manufacturer Advanced Micro Devices (AMD) announced on Tuesday it has reached a deal to acquire chipmaker Xilinx for $35 billion to consolidate its market position.
A joint statement from the two companies said the acquisition will give AMD the largest product portfolio in the microprocessor and high computing performance spheres.
"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," CEO Lisa Su was quoted as saying.
Under the terms of the agreement, AMD will reward Xilinx stockholders with a fixed exchange ratio of 1.7234 shares of its stock for every Xilinx stock, coming to around $135 billion in enterprise value.
The acquisition puts AMD in pole position to overtake longtime competitor Intel as the leading provider of chips for a wide range of fields requiring computational capabilities. Xilinx specializes in producing all-purpose microprocessors that are adaptable for automated industries such as car and airplane manufacturing.
Intel, which had become a household name by dominating the personal computer field, has seen profits and share prices fall drastically over the course of the past year.
