On the morning of October 27th local time in the United States，Global semiconductor giant AMD officially announced，The company has reached a final agreement with Xilinx, the leader in FPGA chips，Agrees to AMD's pipeline acquisition of Xilings with a total value of $35 billion in stock。The transaction is expected to be completed by the end of 2021，The merged company will have 13,000 engineers，More than US$2.7 billion in annual R&D investment。
According to the agreement，Each Xilinx common stock can be replaced by 1.7234 shares of AMD stock。Xilinx is valued at approximately $143 per share，25% higher than Monday's closing price，35% higher than the price before news of a possible deal in early October。
This deal is a wonderful move for AMD CEO Lisa Su，The merger of the two companies will create an industry-leading high-performance computing company，Xilinx's original market will significantly expand the breadth of AMD's product portfolio and customer base。The deal is expected to add AMD's profit margin immediately、Earnings per share and free cash flow，and achieve industry-leading growth。This gives it the confidence to compete with Intel。
When the New York stock market opened on Tuesday，AMD shares fell 2.8% to $879.97。But as of Monday，The stock has risen by 79% this year。Xilinx's stock price rose 10%，It has risen 17% this year。
Since AMD took over the company in 2014 when it was in crisis，Su Zifeng cuts debt significantly，And lead the development of more powerful processors。Company revenue and profits increased significantly，Stock prices also soar。
On a conference call with analysts，Su Zifeng pointed out，The two companies have good complementarity，AMD will provide a combination of high-performance processor technology，Combined with CPU、GPU、FPGA、Self-adjusting SOC and deep software expertise，For the cloud、Edge and terminal devices provide leading computing platforms。Xilinx “with a growing series of markets – 5G communications、Data Center、car、industry、Aerospace and defense fields - established a deep strategic partnership”，The merged company will make full use of Xilinx's advantages，Seize opportunities in these most important growth areas。
Some investors and analysts are concerned，AMD may make a big debt for Xilinx acquisition，Repeat the costly mistakes more than 10 years ago。All-stock trading announced on Tuesday should calm those concerns。
AMD noted，Xilinx has "first-class gross profit margin level and considerable free cash flow capability"。Merger will create “a considerable product”、Technology、Market and financial interests”。
AMD's third-quarter results also surpass Wall Street estimates，And make strong estimates for current revenue，This boosted the market's confidence in AMD's absorption of Xilinx and allowing the merged company to continue to grow。Sales in the third quarter were about $3 billion，Increased 41% over the same period last year。Analysts' average previous estimate was $2.62 billion。before this，Because of PC、Requirements for game and data center processors，AMD grew 56% in the third quarter。
Su Zifeng said on the conference call：“We are expected to achieve significant annual revenue growth this year，And I have never had the confidence in my development trajectory as I am now。”
The acquisition still needs to be approved by shareholders and regulatory agencies, including China。AMD's goal is to close the deal by the end of 2021。AMD said in a statement，Once an agreement is reached，Will immediately improve AMD's profitability、Cash flow and revenue growth。AMD shareholders will own 74% of the new company。
According to a regulatory file，If AMD terminates transaction，Will pay Xilinx $1.5 billion，Xilinx has agreed，If the transaction is canceled，Will pay $1 billion。
AMD CEO Su Zifeng will lead the merged company as CEO。Xilinx President and CEO Victor Peng will join AMD，Be the President，Responsible for Xilinx's business and combat growth plans，Effective after the transaction is completed。also，At least two Xilinx board members will join the AMD board。
This deal will provide Su Yue with more products needed，To break Intel's monopoly in the profitable market of computer components in the data center。Xilinx, based in St. Joseph, California, produces on-site programmable design gate arrays (FPGAs)。This kind of chip is unique，Because even after installation on the machine，Its functions can still be changed through software。
FPGA for wireless network，This acquisition will bring new telecom customers to AMD，Just as the industry spends billions of dollars on building fifth-generation (5G) services。Xilinx is also expanding rapidly in the data center，Its chips speed up computing speeds and help connect to servers。Another major FPGA supplier is Intel，It gained market position in 2015 through the acquisition of Altera Corp.。
Xilinx announced quarterly data center sales growth of 30% last week，Currently accounts for 14% of total revenue。Although its revenue is not as good as AMD，But Xilinx has higher profitability。
Growth of major cloud computing providers such as Amazon and Google drives the deal to some extent。These companies are spending huge amounts of money to build new data centers，To meet the surge in demand for delivering computing power through the Internet。They have become the main buyers of server chips，These wafers are installed in these data centers，Thousands of computers running。
Cloud providers are also competing to use artificial intelligence software to enhance search and other services，Many companies are trying to build their own hardware to achieve this。This increases pressure on chip manufacturers to improve their products。
at the same time，Some traditional markets in Xilinx，Such as cars and network，Devices are increasingly having computer content。AMD is currently unable to access these customers，And Intel can。
AMD's acquisition of Xilinx also brings the chip industry into a record-breaking merger and acquisition year，As big companies compete to integrate，More than $100 billion signed，The competition situation is becoming increasingly fierce。This will intensify its competition with Intel in the data center chip market