A combination of AMD and Xilinx would position AMD to more directly challenge Intel in the telecommunications market, including 5G.

Mike Dano, Editorial Director, 5G & Mobile Strategies

October 9, 2020

2 Min Read
AMD poised to acquire Xilinx for $30B – report

Chipmaker AMD is reportedly preparing to acquire Xilinx – a major player in the 5G silicon arena – in a transaction that could be valued at up to $30 billion.

If the deal goes through – the Wall Street Journal reported that it could be finalized as early as next week – it would position AMD as a more direct competitor to Intel in the telecommunications market.

Citing unnamed sources familiar with the matter, The Wall Street Journal reported on the potential tie-up late Thursday. Xilinx's stock popped on the news – the value of the transaction would put a premium on Xilinx's $26 billion market value – while AMD's fell slightly in early trading Friday.

Xilinx sells chips to customers in several industries including many of the top equipment suppliers in the telecommunications industry. Indeed, just a few months ago Xilinx announced a major new supply agreement with Samsung around 5G. Although Xilinx has been hurt by the US government's ban on US business with China's Huawei – the largest supplier of mobile networking equipment in the world – Xilinx has said that its financial footing is beginning to improve.

AMD, meanwhile, has enjoyed share gains against Intel in personal computers in recent years, according to the WSJ. Intel, for its part, has set its sights on the market for cellular basestations and hopes to gain a leading share in the market by next year, a move that would push against the likes of Broadcom, HiSilicon, Marvell, Qualcomm and Xilinx.

Thus, a transaction between Xilinx and AMD could position AMD to expand its battle with Intel into the telecommunications sector, including in 5G.

If the AMD-Xilinx transaction is consummated, it would be the latest major shakeup in the chipset industry. For example, Nvidia is chasing a match-up with ARM while Analog Devices is buying Maxim Integrated Products.

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Mike Dano, Editorial Director, 5G & Mobile Strategies, Light Reading | @mikeddano

About the Author(s)

Mike Dano

Editorial Director, 5G & Mobile Strategies, Light Reading

Mike Dano is Light Reading's Editorial Director, 5G & Mobile Strategies. Mike can be reached at [email protected], @mikeddano or on LinkedIn.

Based in Denver, Mike has covered the wireless industry as a journalist for almost two decades, first at RCR Wireless News and then at FierceWireless and recalls once writing a story about the transition from black and white to color screens on cell phones.

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