AMD agrees to buy rival Xilinx in $35-billion deal to take on Intel

Semiconductor designer Advanced Micro Devices (AMD) on Tuesday said it has agreed buy Xilinx in a $35 billion all-stock deal that will intensify its battle with Intel Corp in the data center chip market.

The deal, which AMD expects to close at the end of 2021, would create a combined firm with 13,000 engineers and a completely outsourced manufacturing strategy that relies heavily on Taiwan Semiconductor Manufacturing Co Ltd (TSMC).

Deal will broaden AMD’s business into chips for 5G market, automotive electronics The two US firms have benefited from a more nimble approach to grab market share from Intel, which has struggled with internal manufacturing.