Advanced Micro Devices (NASDAQ:AMD) is in advanced talks to buy rival chip maker Xilinx in a deal that could be worth $30 billion, according to multiple media reports.
A deal, which would mark the latest tie-up in the rapidly consolidating semiconductor industry, could come together as soon as next week, The Wall Street Journal newspaper reported. AMD has seen a higher usage of its products recently, driven in part by an overall surge in chip demand due to a global shift to work from home, and market-share gains from rival Intel (NASDAQ:INTC).
San Jose, California-based Xilinx (NASDAQ:XLNX) makes programmable chips used in data centers to speed up tasks such as artificial intelligence work and in 5G telecommunications base stations.
Xilinx’s business suffered a setback last year when key customer Huawei Technologies Ltd was blacklisted by U.S. officials, preventing it from buying chips from U.S. companies. Government officials have since added other China-based companies, including some other Xilinx customers, to the blacklist.
