Bid 30 billion US dollars! AMD may acquire Xilinx...

International electronic business information learned from foreign media, people familiar with the matter disclosed that AMD is conducting in-depth negotiations with the latter on the acquisition of competitor Xilinx, the purchase amount may be 30 billion US dollars. AMD will expand into new markets and more businesses through Xilinx, and the transaction may be concluded as early as next week. The industry pointed out that if the acquisition goes smoothly, it will be the latest mega-scale merger and acquisition in recent months...

According to a Bloomberg report, some people familiar with the matter revealed that AMD (American Chaowei Semiconductor) is conducting in-depth negotiations on the acquisition of rival company Xilinx, the acquisition value may be as high as 30 billion US dollars.

"The deal may be concluded as early as next week, but the situation is still changing," the person familiar with the matter pointed out that the two companies are discussing the acquisition in private, saying that the negotiations had stalled for a while, but the two sides recently restarted discussions and accelerated the transaction process. The person therefore said that whether the two companies can reach an agreement is still uncertain.

The report pointed out that the commercialization of 5G networks has accelerated this acquisition. Cloud service providers such as Amazon and Google have continued to increase market demand and have invested a lot of money in new data centers to meet people’s growing demand for Internet computing power. Claim. At the same time, due to the fierce market competition, many companies are trying to use artificial intelligence software to improve services such as search engines, and even make their own chips or hardware in order to get "good reviews" from consumers. These changes in demand have brought tremendous pressure to chip suppliers, and also made AMD more urgent to acquire Xilinx, because after the merger, AMD can integrate the latter's business advantages to obtain a new market position and expand more businesses.

Public information shows that Xilinx (Xilinx) is a world-renowned supplier of FPGA solutions, headquartered in San Jose, California. The company develops, manufactures and sells a wide range of high-end integrated circuits, software design tools and IP (Intellectual Property) cores as predefined system-level functions. It is reported that its FPGA products have been used in telecommunications equipment at the earliest and have expanded to the data center field since 2014. Another major supplier of advanced FPGAs in the market is Intel, which gained market position and more business through the acquisition of Altera in 2015.

Representatives of AMD and Xilinx declined to comment.

According to the analysis of the "Wall Street Journal", AMD's move may be a quick response to rivals Intel and Nvidia, and is driven by a series of recent mergers and acquisitions. Prior to this, in September of this year, Nvidia announced that it would acquire ARM, a British chip design company controlled by the SoftBank Group, at a price of US$40 billion. This transaction has attracted great attention from the industry.

The media believes that AMD may use its high stock valuation as a leverage to leverage this transaction. The current market value of AMD is about $100 billion. Xilinx is currently valued at US$26 billion.

Some industry players pointed out that if an agreement can be reached with Xilinx on the acquisition, AMD will have an advantage in the competition with Intel, and it will have a greater position in the growing telecommunications and defense markets, which will also become a semiconductor The industry has seen another ultra-large-scale M&A case in recent months.