AMD in takeover talks with Xilinx – report

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Advanced Micro Devices Inc (NASDAQ:AMD) is in talks about a potential US$30bn offer for semiconductor devices specialist Xilinx Inc (NASDAQ:XLNX), according to reports.

The move, first reported by the Wall Street Journal, comes amid fierce rivalry with chipmakers Intel Corporation (NASDAQ:INTC) and NVIDIA Corporation (NASDAQ:NVDA).

Xilinx, which has collaborated with AMD in the past, specialises in making field-programmable gate arrays (FPGA), in-demand semiconductor devices, and cutting-edge adaptive compute acceleration platform (ACAP) products, which both are used in data centers, wireless communications, AI and machine learning, electric cars, aerospace and defense.

The talks were reported to have resumed after a recent hiatus, but the WSJ said a decision could come as early as next week.

“On paper, the addition of FPGA would broaden AMD’s compute portfolio,” said analysts at UBS, but raised some points of caution.

Overall, their point was “if you want to run with the big players, you need to invest a lot of money – and AMD is still too small to support all of this” without a big impact on earnings.

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