AMD and Xilinx have announced they have entered into a definitive agreement for the former to acquire the latter in an all-stock transaction valued at US$35 billion.

The combination will create the industry's leading high performance computing company, significantly expanding the breadth of AMD's product portfolio and customer set across diverse growth markets where Xilinx is an established leader, according to the companies.

"Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry's high performance computing leader and partner of choice for the largest and most important technology companies in the world," AMD president and CEO Lisa Su said. "This is truly a compelling combination that will create significant value for all stakeholders, including AMD and Xilinx shareholders who will benefit from the future growth and upside potential of the combined company. The Xilinx team is one of the strongest in the industry and we are thrilled to welcome them to the AMD family. By combining our world-class engineering teams and deep domain expertise, we will create an industry leader with the vision, talent and scale to define the future of high performance computing."

"We are excited to join the AMD family. Our shared cultures of innovation, excellence and collaboration make this an ideal combination. Together, we will lead the new era of high performance and adaptive computing," said Victor Peng, Xilinx president and CEO. "Our leading FPGAs, Adaptive SoCs, accelerator and SmartNIC solutions enable innovation from the cloud, to the edge and end devices. We empower our customers to deploy differentiated platforms to market faster, and with optimal efficiency and performance. Joining together with AMD will help accelerate growth in our data center business and enable us to pursue a broader customer base across more markets."

With a combined team of 13,000 engineers and over US$2.7 billion of annual R&D investment, AMD will have additional talent and scale to deliver an even stronger set of products and domain-specific solutions, said the companies.

The transaction has been unanimously approved by the boards of directors of AMD and Xilinx. The acquisition, subject to approval by AMD and Xilinx shareholders, certain regulatory approvals and other customary closing conditions, is currently expected to close by the end of calendar year 2021, said the companies.

Lisa Su will lead the combined company as CEO, while Victor Peng will join AMD as president responsible for the Xilinx business and strategic growth initiatives, effective upon closing of the transaction.