(Reuters) – Semiconductor designer Advanced Micro Devices Inc (AMD)
said on Tuesday it would buy Xilinx Inc
in a $35 billion all-stock deal, intensifying its battle with Intel Corp
in the data center chip market.
The deal, which AMD expects to close at the end of 2021, will create a combined company with 13,000 engineers and a completely outsourced manufacturing strategy that relies heavily on Taiwan Semiconductor Manufacturing Co Ltd (TSMC) <2330.TW>.
The two U.S. firms have benefited from a more nimble approach to grab market share from Intel, which has struggled with internal manufacturing.
AMD has long been Intel’s chief rival for central processor units (CPUs) in the personal computer business.
Since Chief Executive Lisa Su took over AMD in 2014, she has focused on challenging Intel in the fast-growing business of data centers that power internet-based applications and services and are fuelling the rise of artificial intelligence and