The closing of the deal comes on the heels of Nvidia abandoning its plans to buy SoftBank-owned Arm Ltd, citing regulatory hurdles.The deal, announced in October 2020, was originally valued at $35 billion, but the rise of AMD stock has pushed up the price tag, according to AMD.
The purchase of Xilinx helps AMD"capture a larger share of the approximately $135 billion market opportunity we see across cloud, edge and intelligent devices," AMD's CEO Lisa Su said in a statement.The combined company will have over 15,000 engineers and a completely outsourced manufacturing strategy that relies heavily on Taiwan Semiconductor Manufacturing.
The two US companies have benefited from a more nimble approach to grabbing market share from Intel, which has struggled with internal manufacturing. AMD has long been Intel's chief rival for central processor units in the personal computer business. AMD's Su will lead the combined company as chief executive, with Xilinx's CEO Victor Peng as president of the newly formed Adaptive and Embedded Computing Group.