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Further consolidation in the chip industry

NVIDIA's $40 billion deal to acquire Arm and Analog Devices’ $21 billion deal back in July to acquire Maxim Integrated have been the stand out deals of 2020, but could they now be joined by AMD acquiring Xilinx?

If media reports prove accurate, it would be another massive deal in a consolidating chip industry. The talks between the two companies are said to be at an advanced stage, with AMD looking to buy the field-programmable gate array (FPGA)-maker for around $30 billion. Should the talks be successful, a deal could be reached this week.

Xilinx has an extensive portfolio focused on data centres and its acquisition would give AMD considerable firepower in the fast growing, but competitive market. Xilinx’s products can also be found across a host of other sectors such as: wireless communications, AI, machine learning, automotive, industrial, consumer, aerospace, and the defence industries.

Should AMD acquire Xilinx, it will enable it to better compete with Intel, which carried out a similar move in 2015, when it acquired Altera.

AMD has looked to buy Xilinx in the past and that deal fell through, so this is certainly not a done deal. If it comes off, however, it would give AMD a significant stake in a huge market and place it in a far better position to take on the likes of Intel, NVIDIA, Qualcomm and Huawei.

Author
Neil Tyler

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