After some rumors about a potential deal surfaced a few weeks ago, the news is now official and AMD is set to acquire the chip manufacturer Xilinx for a total of $35 billion to expand AMD’s business in the Data Center sector, in a move that is not so different from Nvidia’s recent acquisition of Arm.

Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry’s high performance computing leader and partner of choice for the largest and most important technology companies in the world,” said Lisa Su, CEO and President of AMD. 

This is truly a compelling combination that will create significant value for all stakeholders, including AMD and Xilinx shareholders who will benefit from the future growth and upside potential of the combined company.

Xilinx specializes in manufacturing custom chips like FPGAs (Field Programmable Gate Arrays) as well as various SoCs (System-On-Chip). Most recently they have been focusing on 5G networks, and AMD’s acquisition puts them to use on more data center technologies.

However, the acquisition briefly mentions gaming as well, but this probably won’t lead to anything very significant for the PC industry. Instead, Xilinx’s portfolio on custom silicon will help AMD when it comes to console manufacturing, which the Red Team have been focusing a lot on lately thanks to the next-gen consoles using their hardware.

The Xilinx team is one of the strongest in the industry and we are thrilled to welcome them to the AMD family. By combining our world-class engineering teams and deep domain expertise, we will create an industry leader with the vision, talent and scale to define the future of high performance computing.

Additionally, the acquisition of Xilinx could potentially put more money into AMD’s pockets, which would lead to more finance available for Research & Development. So in a way, whether this acquisition directly affects PC players or not, it will certainly help in some way.

The acquisition deal won’t be finalized until the end of 2021, so until then both AMD and Xilinx will be operating as separate, independent companies.

What do you think? How do you feel about the deal? Is this good for AMD? What other benefits are there? And what conflicts could possibly occur? Let us know!