AMD is at the top of its game currently, with their latest move taking them even further along their path to leading name in computer and component design and manufacturer. AMD today announced that they will be acquiring FPGA manufacturer Xilinx in a $35 billion buyout that will see an all-stock transaction putting AMD indirect control of Xilinx.
Dr. Lisa Su, the CEO of AMD has since issued a statement regarding the acquisition, stating that the ‘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.’
Dr Su also stated that the engineering teams of Xilinx will be combined with that of AMD’s making for a combined force of around 13000 engineers working under the AMD banner. With this kind of technical workforce and cumulative expertise, it’s hard to see any way in which AMD is going to fall short of their goals in acquiring Xilinx itself.
As far as those goals go, it’s currently a little unclear as to what they might be. However, there is some speculation that the reason AMD has acquired Xilinx is to expand its capabilities within data centers – a huge portion of the tech market today, with thousands of companies using data centers for computational power and server management.
Concerning personnel changes, there doesn’t look to be that many radical shake-ups. Dr Su will oversee all operations as CEO, and the Xilinx President and CEO will be joining the AMD team as Xilinx President, overseeing their business as he does currently – except now he will have the oversight of AMD.
Realistically, this doesn’t have a drastic effect regarding end-user customers who are looking to see how this news is going to change the CPUs going into their gaming PCs. However, when you consider the expanded workforce and communal knowledge being brought under AMD’s banner, it is interesting to speculate what data center management and handling could mean for the other aspects of AMD’s business – maybe they will begin to look further into cloud-based computing and gaming, which seems to be a pressing idea in that sphere.
Of course, there is AMD’s share price and valuation to consider as well. Obviously, this acquisition is going to have a positive effect on the valuation of AMD shares as they stand at the moment, and with the upcoming release of both the Zen 3 line of processors and the 6000 series GPUs, AMD is on track to have an outstanding end to 2020.
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