⁍ AMD has long been Intel’s chief rival for central processor units (CPUs) in the personal computer business.
⁍ The two U.S. firms have benefited from a more nimble approach to grab market share from Intel.
⁍ The tie-up comes at a time when Intel’s manufacturing technology has fallen years behind TSMC’s.
– Advanced Micro Devices is buying rival Altera in a $35 billion deal that will create the world’s second-largest chip maker and strengthen its fight against Intel in the data center market, the AP reports. The all-stock deal announced Tuesday will create a company with 13,000 engineers, Reuters reports. The two US firms have benefited from a more nimble approach to grab market share from Intel, which has struggled with internal manufacturing. AMD has long been Intel’s chief rival for central processor units (CPUs) in the personal computer business. Since Chief Executive Lisa Su took over AMD in 2014, she has focused on challenging Intel in the fast-growing business of data centers that power internet-based applications and services and are fueling the rise of artificial intelligence and fifth-generation telecommunications networks. The deal, which AMD expects to close at the end of 2021, will create a combined company with a completely outsourced manufacturing strategy that relies heavily on Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) 2330.TW. The two US firms have benefited from a more nimble approach to grab market share from Intel, which has struggled with internal manufacturing. The tie-up comes at a time when Intel’s manufacturing technology has fallen years behind TSMCs. AMD, which spun off its factories nearly a decade ago, has rocketed ahead of Intel with chips that perform better. The performance edge helped AMD gain its best market share since 2013 at slightly less than 20% of CPU market, which has in turn pushed its shares up 79% this year.
Source: https://www.reuters.com/article/us-xilinx-m-a-amd/amd-to-buy-chip-peer-xilinx-for-35-billion-in-data-center-push-idUSKBN27C1EP