AMD stretches for increased flexibility by acquiring Xilinx

Share on facebook
Share on twitter
Share on linkedin
Economic uncertainty tends to be a good time for corporate acquisitions, and times have never been more uncertain. Latest on the block is Xilinx, subject to a $35bn acquisition offer from AMD. With this acquisition technology providers must plan for the data center industry coalescing around 3 platforms — AMD/Xilinx, NVIDIA/ARM and Intel. AMD and Xilinx don’t currently overlap much in the product portfolio, or customer base. The exception being within the data centre: where AMD has been gaining share vs Intel and is expected to continue to grow this business in the coming years. With the addition of Xilinx, AMD will be able to gain ground in the fast-growing AI market, supplying data centers and edge infrastructure deployments. Xilinx FPGAs and ACAPs are also used in SmartNICs, for high performance networking. Being integrated into the backbone of many infrastructure deployments will further broaden AMD’s data centre footprint. In its recent earnings call Xilinx reported a major SmartNIC design win at a hyperscale cloud service provider, and this could enable AMD to further build on its existing processor design wins amongst this highly lucrative set of customers. Xilinx has an established presence in the communication, industrial and automotive markets, where AMD currently has little exposure. With a foot in the door AMD should be able to broaden its market penetration beyond its traditional data centre and PC markets. Gartner customers can get further insight into how this acquisition is going to impact the evolution of the data centre platform markets, and amongst the major data centre chip providers, in “AMD’s Acquisition of Xilinx Impacts The Data Center Landscape”

Source: Gartner Blog Network On:

Read On

This post was originally published on this site

Leave a Reply

CIO Newsletters

Copyright ©  2020  CIO Portal. All rights reserved.