AMD Completes Acquisition of Xilinx

AMD has finally completed the acquisition of Xilinx. The acquisition is officially the largest in semiconductor history and brings together two industry leaders with complementary product portfolios, customers, and market expertise.

The Xilinx business will become the Adaptive and Embedded Computing Group (AECG), led by former Xilinx CEO Victor Peng. AECG will remain focused on driving leadership FPGA and Adaptive SoC and embedded product roadmaps for its core markets, now with the additional scale of the combined company and the ability to offer an expanded set of solutions, including AMD CPUs and GPUs.

AMD CEO Lisa Su said, “The acquisition of Xilinx brings together a highly complementary set of products, customers and markets combined with differentiated IP and world-class talent to create the industry’s high-performance and adaptive computing leader. Xilinx offers industry-leading FPGAs, adaptive SoCs, AI engines and software expertise that enables AMD to offer the strongest portfolio of high-performance and adaptive computing solutions in the industry and capture a larger share of the approximately $135 billion market opportunity we see across cloud, edge and intelligent devices”.

Victor Peng, President of the newly formed Adaptive and Embedded Computing Group (AECG) said, “The rapid expansion of connected devices and data-intensive applications with embedded AI are driving the growing demand for highly efficient and adaptive high-performance computing solutions. Bringing AMD and Xilinx together will accelerate our ability to define this new era of computing by providing the most comprehensive portfolio of adaptive computing platforms capable of powering a wide range of intelligent applications.”

Jaya Jagadish, Country Head, AMD India said, “It is a momentous occasion for AMD as we close the acquisition of Xilinx today, establishing ourselves as the industry’s high-performance and adaptive computing leader. Outside North America, Xilinx has its largest employee presence in Hyderabad, doubling AMD’s presence in India. I look forward to working with the Xilinx team to expand AMD’s product portfolio into adaptive computing solutions to accelerate an even more diverse set of emerging and evolving workloads.” 

The acquisition provides multiple benefits, including:

·         Increasing AMD’s TAM from $80B to $135B, expanding AMD’s customer base and diversifying AMD into new markets

o Xilinx’s deep strategic partnerships across wired and wireless communications, automotive, industrial and test, aerospace and defense, broadcast, measurement and emulation, and consumer markets complement AMD partnerships in the PC and data center markets.

·         Providing incremental scale to AMD’s R&D

o Brings additional capabilities in advanced technology development, including leadership, die stacking and packaging technology, chiplet and interconnect technology, AI and domain-specific architectures, and best-of-breed software platforms.

·         Further strengthening AMD’s financial model

o Provides multiple diverse revenue streams across new end markets with long, high-margin product cycles while maintaining AMD’s industry-leading growth.

o The transaction is expected to be accretive to non-GAAP gross and operating margins, non-GAAP EPS, and free cash flow generation in the first year.

Written by Shintu Dhang