NVIDIA's takeover of Arm will remain the largest it has announced this year, but a deal between AMD and Xilinx could be the next step, with an estimated budget of $30 billion. AMD may announce as early as next week.
Since the beginning of this year, AMD shares have grown in price by 89%, the value of the company's capitalization now exceeds $100 billion. The amount of free cash that the company could, if necessary, direct to purchase the necessary assets and technologies, is also growing. According to The Wall Street Journal, talks between AMD and Xilinx have recently resumed after a long break on the possibility of the latter coming under the control of the former. About the deal maybe already next week.
Xilinx is the main competitor of Altera, acquired by Intel in 2015, which also developed programmable arrays (FPGA). The demand for them in our time is steadily growing, since they are used not only in the new generation of telecommunications equipment, but also in autopilot systems in transport. At least in the early stages of prototyping and experimentation, programmable arrays are beneficial due to their functional flexibility and versatility.
FPGAs are also used in the defense sector, although AMD in this sense is already a long-standing supplier of military components, and therefore this market segment will not be new for it if Xilinx is purchased. The capitalization of the last of the companies reaches $26 billion, therefore, subject to the payment of a standard premium, the buyer will be able to count on an amount of at least $30 billion. Of course, AMD does not have such funds in free form, and it will pay for the deal with its shares and attracted capital. While this idea is being discussed only at the level of rumors, we need to wait for the next week or some public comments from interested parties.
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Source: 3dnews.ru