Semiconductor firm Advanced Micro Devices Inc. has closed its $50-billion acquisition of Xilinx Inc. to mark a milestone in the industry, Reuters reported.
- Announced in October 2020, the deal was finalized after AMD secured the necessary approvals for the transaction. It was originally valued at $35 billion but was hiked due to the rise of AMD stock.
- AMD Chief Executive Lisa Su said the firm will benefit from the transaction by capturing a bigger share of the estimated $135-billion market opportunity it sees across cloud, edge, and intelligent devices.
- The finalization of the transaction is in line with ADM’s efforts to boost competition with Intel Corp. in the data center chip market, with the combined firm having 15,000 engineers. It will also completely outsource manufacturing strategy.
The parties expect to save $300-million worth of costs from the transaction. AMD is up 3.67%.