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AMD Reportedly In Advanced Talks To Buy Xilinx for Roughly $30 Billion

(Image credit: AMD)

In what could be a move to broaden its attack on rival chipmakers Intel and Nvidia, the Wall Street Journal reports that AMD is in advanced talks to buy FPGA-maker Xilinx in a deal that could top $30 billion. The talks are said to have resumed after a recent pause, so it's unclear if they will result in a successful acquisition, but a decision could come as early as next week. We've reached out to AMD for comment and will update accordingly.

Xilinx is primarily known for its FPGA products. The two companies have a history of working in close collaboration on deep learning projects, such as the Xilinx deep learning solution on AMD EPYC processors (among many other pursuits).

FPGAs (Field Programmable Gate Arrays) are semiconductor devices that can be rapidly reconfigured on the fly. They offer certain advantages over other types of devices, like CPUs and GPUs, in a wide variety of workloads. 

Xilinx has a full spate of cutting-edge tech under its roof. Its latest 7nm Versal Premium ACAPs feature the PCIe 5.0 interface and support the CXL interconnect, 112G transceivers, 600G ethernet cores, and 123 TBps of bandwidth across its network-on-chip (NOC). You can read the full details of the company's APAC platform here.

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Bringing Xilinx's technology portfolio into AMD's war chest could enable tightly-integrated CPU+FPGA solutions that would fit well within AMD's current chiplet-inspired design methodologies. It's easy to envision future EPYC data center processors with integrated FPGA chiplets to boost AI workload performance.

Xilinx's broad technology pallet includes leading-edge connectivity options that could also serve as a backbone for more expansive data center architectures. AMD would certainly have plenty of options with Xilinx under its roof; the FPGA maker currently engages in the automotive, aerospace and defense, data center, HPC, industrial, IoT, and communications markets. The firm also has deep experience in software development/enablement. 

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Notably, Intel purchased Xilinx's main rival, FPGA-maker Altera, for $16.7 billion in 2015, and has integrated the company into its Programmable Solutions Group (PSG). If the reported AMD purchase of Xilinx goes through, it will certainly open up another front in its attack on Intel's broad TAM. You can see the full roster of Intel's AgileX FPGAs that come as a result of the Xilinx acquisition here.

The AMD news comes in the wake of Nvidia's ongoing efforts to purchase ARM for $40 billion and could mark yet another big deal during an ongoing wave of industry consolidation. Xilinx also has a solid portfolio of SmartNic/DPUs that would serve as a nice AMD parry to Nvidia's DPU thrust that comes as the fruits of its Mellanox acquisition

The WSJ reports that AMD will likely leverage its high stock valuation, it now has a $100 billion market cap, as currency to purchase Xilinx.

This is breaking news..updates to come. 

  • setx
    AMD would certainly have plenty of options with Altera under its roof
    What? Did you copy-paste an old article about Intel?
    Reply
  • hotaru251
    idk if they should be blowing 30B when they finally are getting a stash of $.
    Reply
  • TerryLaze
    AMDs total assets are around 6.6bil if they do that it's goodbye for AMD, so it's a good thing it's basically impossible for them, they would need to make like 25bil debt, they wouldn't survive that.
    And that's just to acquire them,xilinx is in pretty bad shape themselves with about 3bil in liabilities against them.
    https://www.macrotrends.net/stocks/charts/AMD/amd/total-assets
    Edit:
    Also xilinx total assets are about 5.4 bil so paying 30 bil for them is utopian to not say completely stupid.
    https://www.macrotrends.net/stocks/charts/XLNX/xilinx/total-assets
    Reply
  • MasterMadBones
    This sounds like a very unhealthy acquisition for a relatively small company such as AMD.
    Reply
  • Avro Arrow
    OMG, is AMD insane? Let's remember what happened when AMD bought fabs and ATi. If anything goes wrong, they'll be in trouble again!
    Reply
  • gdmaclew
    Very bad idea. Just when AMD shows signs of surpassing Intel on the all-round performance scale, they are considering taking on more debt? What will this do to their R&D budget?
    The landscape is littered with the remains of companies that went "a bridge too far".
    Consolidate your position first AMD and then maybe look to expand.

    Note: Broden its attack? Broden?
    Reply
  • logainofhades
    gdmaclew said:
    Very bad idea. Just when AMD shows signs of surpassing Intel on the all-round performance scale, they are considering taking on more debt? What will this do to their R&D budget?
    The landscape is littered with the remains of companies that went "a bridge too far".
    Consolidate your position first AMD and then maybe look to expand.

    Note: Broden its attack? Broden?

    You missed this apparently.

    The WSJ reports that AMD will likely leverage its high stock valuation, it now has a $100 billion market cap, as currency to purchase Xilinx.
    Reply
  • TerryLaze
    logainofhades said:
    You missed this apparently.
    The WSJ reports that AMD will likely leverage its high stock valuation, it now has a $100 billion market cap, as currency to purchase Xilinx.
    Yeah this is maybe even worse than making actual debt...
    How much % of AMD stock are still with AMD? How much of that would be 30bil? Would AMD keep their share majority?

    And on the flip side from xilinx side, if they try and sell all 30bil of shares right away that's 30% of AMDs whole value in shares being dumped into the market all at once which could make share price plummet like crazy, it could even affect the stock market as a whole.

    And if they make a clause to keep the stock for a set amount of time it becomes a super huge gamble for xilinx,AMD shares were $2 just a couple of years ago so it's not like it's a stable stock or anything, if it drops (for example because rocket lake will have 20% more compute units and whatever more cache and higher clocks) xilinx will be losing a big chunk of money.
    Reply
  • jimmysmitty
    hotaru251 said:
    idk if they should be blowing 30B when they finally are getting a stash of $.

    Thats actually exactaly what they should do. Consumer CPUs and GPUs along with entry level server/HPC is not nearly as profitable as HPC specific products. Intel makes vastly better margins with their FPGAs than they do with their consumer CPUs.

    If they do well it would be a source of cash to help them continue to grow even if their consumer products are not as competitive as they currently are.
    Reply
  • InvalidError
    gdmaclew said:
    Very bad idea. Just when AMD shows signs of surpassing Intel on the all-round performance scale, they are considering taking on more debt? What will this do to their R&D budget?
    Intel bought Altera.
    Nvidia bought Mellanox.

    What do you think would happen if AMD decided to pass on Xilinx which is one of the few remaining companies out there with a portfolio of ultra-high-speed interconnect stuff? AMD would end up falling behind in datacenter, AI, supercomputers and a bunch of other far more lucrative markets than PC and dual-socket servers.

    AMD buying Xilinx is practically necessary if it does not want to repeat 2006.
    Reply