Chipmaker AMD will buy competitor Xilinx for $35 billion

US chip maker Advanced Micro Devices (AMD) will buy rival Xilinx for $35 billion. The deal will be fully paid for by AMD shares, the company said in a press release.

The purchase of Xilinx will allow AMD to significantly expand its product portfolio and customer base in a number of growing markets, the report says.

The deal has already been backed by the boards of directors of both companies and requires shareholder and regulatory approval to complete. AMD expects that the transaction will be subject to the terms of the reorganization, not subject to tax in the United States. The parties expect to close the deal by the end of 2021.

Under the terms of the deal, Xilinx shareholders will receive 1.7234 AMD shares for each share of the company. As a result, Xilinx shareholders will own about 26% of the combined company worth about $135 billion, according to a press release.

• of late . The AMD-Xilinx deal is one of the largest in the semiconductor industry and has seen rapid consolidation

• AMD capitalization has increased by 79% since the beginning of 2020, to $96 billion, due to an increase in demand for devices that use AMD chips against the backdrop of the coronavirus crisis. Xilinx shares are up 17% this year, with a market value of about $29 billion.