AMD could buy chipmaker Xilinx for more than $30 billion as early as next week, The Wall Street Journal reports.
The deal would give AMD in-house FPGA technology and boost its prowess in data center and mobile compute where it competes against rival Intel, which is the only other big FPGA player.
Xilinx makes FPGA-based acceleration cards that that offload workloads including SDN, virtualized switching, NFV, and artificial intelligence inference, among others, freeing up the CPU for other applications. In March, it announced a new smartNIC for tier-two and three cloud service providers, operators, and private cloud data centers.
And just last month it rolled out an entirely new product line — PCIe cards — designed for network operators’ distributed and virtual baseband units (vBBUs) in 5G open radio access networks (RAN).
Intel has also been pushing into the 5G space, where it sees a $25 billion opportunity by 2023.
If AMD does acquire Xilinx, the FPGA technology will give it a stronger footing to compete against Intel for 5G deals.
However, there is no guarantee that the purchase will happen, The Wall Street Journal reports. It says earlier talks stalled before recently restarting, citing people familiar with the deal.
Semiconductor Market ConsolidationThe Xilinx acquisition rumors come amid rapid consolidation in the semiconductor market with Intel and Nvidia spending billions of dollars acquiring competing chipmakers. In September Nvidia agreed to pay $40 billion for Arm, and earlier this year closed a deal to buy Mellanox for $6.9 billion. Just last week it launched a new line of data processing units (DPUs) and a data center architecture based on Mellanox’s technology.
Additionally, Intel closed out 2019 with the purchase of AI startup Habana Labs for $2 billion. That purchase came just months after Intel signed an agreement to buy Barefoot Networks for an undisclosed amount in a bid to boost its hyperscale cloud data center business.
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