It seems like the tech-specialized companies expanding their horizons is the leitmotif of this week’s end. After IBM announced that it would split in two entities to focus on cloud computing services, another company is tackling the semiconductor industry even more.
According to people familiar with the matter, Advanced Micro Devices (AMD) is in talks to buy one of its rivals, Xilinx. The deal, which is currently valued at $30 billion, could be among the most significant purchases in this industry.
Xilinx, the California-based company deals with programmable chips used in data centers to boost tasks such as AI work and 5G base stations. It suffered some setbacks after the US officials banned Huawei Technologies Ltd – one of its key customers – from buying chips from American manufacturers.
The deal will be closed next week, but there is no guarantee given the fact that negotiations have stalled once before.
AMD’s market cap is over $100 billion. This happened after the stock price surged 90% due to the pandemic-induced need for chips as people started working from home.
The market had mixed reactions to the news. AMD stock price dropped 0.21%, while Xilinx share price added 0.15%.
Read here more about IBM’s initiative!
Sources: wsj.com, cnbc.com