The two companies announced Tuesday that the all-stock transaction will create the industry’s largest high-performance computing company and further bolster AMD’s growing portfolio. Combined, it will have 13,000 employees with the deal expected to close at the end of 2021.
Together, the companies are hoping to further establish itself against Intel and other rivals as demand booms for chips needed for computers, cars and aerospace.
“Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry’s high performance computing leader and partner of choice for the largest and most important technology companies in the world,” AMD CEO Dr. Lisa Su said in a statement.
AMD also released earnings early Tuesday, reporting a 56% jump in sales to $2.8 billion. “Strong customer momentum drove our fourth straight quarter of greater than 25% year-over-year revenue growth,” the company said.
The acquisition marks the latest big tie-up in the rapidly consolidating semiconductor industry.