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AMD expanding TAM with $35 billion Xilinx acquisition

Xilinx looking to grow its role in mass 5G network deployments

Santa Clara, Calif.-based AMD, which specializes in high-performance CPUs and GPUs for data centers and PCS as well as gaming SoCs, today announced a “definitive agreement” to acquire Xilinx in an all-stock deal worth $35 billion.

Xilinx specializes in silicon for “adaptive” compute for field programmable gate arrays, accelerator cards and SoCs for data centers and, increasingly, for the telecoms market as computing is distributed throughout the network in pursuit of edge-focused applications.

According to AMD, the move will grow their data center business and increase total addressable market to $110 billion. AMD said the deal will be immediately accretive and the combined company will have an enterprise value of around $135 billion.

AMD President and CEO Lisa Su said the acquisition is “the next leg in our journey to establish AMD as the industry’s high performance computing leader.” AMD said the combined company, in addition to expanding share in data centers, will be better positioned for growth in the communications, automotive, industrial, and aerospace and defense verticals.

“The Xilinx team is one of the strongest in the industry and we are thrilled to welcome them to the AMD family,” Hu said. “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.”

Patrick Moorhead, founder, president and principal analyst at Moor Insights and Strategy, wrote in Forbes that, “While both the companies are currently focused on different products and markets, both are on very synergistic, advanced technologies…AMD’s intent to acquire Xilinx is a bold move that I think makes sense and caps off an incredible run by AMD. I believe AMD will continue to organically grow with or without this acquisition, as hopefully evidenced by its monster Q3, its upward guide, and roadmap. I do think AMD has a brighter, long-term future with Xilinx as it creates a larger entity that is more diversified across different markets and products while leveraging similar technologies.”




Sean Kinney, Editor in Chief
Editor-in-Chief Sean focuses on multiple subject areas including 5G, Open RAN, hybrid cloud, edge computing, and Industry 4.0. He also hosts Arden Media's podcast Will 5G Change the World? Prior to his work at RCR, Sean studied journalism and literature at the University of Mississippi then spent six years based in Key West, Florida, working as a reporter for the Miami Herald Media Company. He currently lives in Fayetteville, Arkansas.

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