Is the semiconductor industry going into the integration period?
In 2020, after ADI proposed US $21 billion acquisition of Maxim and NVIDIA's $40 billion acquisition of arm, another big deal broke out in the semiconductor industry.
The wall street journal quoted a person familiar with the matter late thursday as saying AMD was in deep talks about buying Xilinx ling, a maker of programmable logic devices, which could be worth more than $30 billion. Searing's shares rose 14.11 percent, while AMD fell 3.94 percent.
As artificial intelligence ,5 G、 the Internet of things and other areas of semiconductor demand, the industry has entered a cyclical boom. The giants, all eyes fixed on the next era.
what do AMD want?
Xilinx's main business is to design, develop and sell programmable platforms, including advanced integrated circuits, software design tools and pre-defined system functions, and deliver core intellectual property rights.
Xilinx is the leader of FPGA (field programmable gate array), with a share of more than 50%. This established semiconductor enterprise in 1984 is the inventor of FPGA and the first fabless semiconductor company in the world.
In 2019, Q2 ranked sixth in the global fableless manufacturers, only one lower than AMD.
The FPGA is semi-customized, the design and development cycle is shorter, and the marketing speed and process can be faster than the dedicated integrated circuit ASIC because there is no
Syrinx, based in San Jose, California, makes programmable chips for data centers to speed up tasks such as artificial intelligence work and 5g Telecom base stations.
At present, the construction of 5g infrastructure, cloud server and artificial intelligence chips, which are hot fields, need to be built based on FPGA, and the importance of Xilinx is self-evident. For example, Huawei is one of the big customers of Xilinx.
At this point, you should also understand that AMD want this deal, directly into the market that Intel firmly controls. The deal is significant for AMD, probably the biggest deal the semiconductor company has had since it acquired ATI in mid-2006.
The epidemic has ushered in a brief return to the PC market, but both inside and outside the industry clearly know that this is only temporary, PC is still the sunset market, AMD light is not enough now, but also need to find the future imagination space. And data center, server market is that answer obviously, grow rapidly, industry space is huge.
Server field, Intel is still the dominant, for this To B market, stability, customer development and maintenance are lessons, AMD will be difficult to shake Intel for a while, AMD is still a backup or supplementary choice, but AMD have begun to catch up.
AMD server market share grew from 1 percent to 8 percent from 2017 to 2019, CEO August this year, as AMD took large orders from Amazon and Microsoft
In 2016, Intel spent $16.7 billion on Altera, purchase And the latter FPGA second in market share, Then Intel blended its CPU with FPGA very successfully, Apparently it put a lot of pressure on AMD, Slower pace, You may lose the chance to catch up forever. In January, AMD also dug up the former Intel senior vice president, head of FPGA division Dan McNamara.
Intel's acquisition Altera, avida wanted to swallow Arm, and to play with cyling is AMD response. The future semiconductor market would be intel Altera、 nvidia Arm and AMD and sirex if both acquisitions were made.
However, even if amd successfully acquired Xilinx, the impact is difficult to be reflected in the short term. After all, Intel's advantages in the server field are too stable. What amd really wants is to enter 5g, the Internet of things, automobiles and so on. In the past, amd had almost no business layout opportunities. It is a ticket to the next era.
Now is the best time?
The ability to offer to buy the world's top 10 Fabless company, Searing, also shows that AMD recent financial situation is indeed good, with a market value of about $97.564 billion and a market value of about $29.5 billion.
Since this year, AMD market value has soared more than 80%, market value has also exceeded 100 billion ,2019 operating cash flow and free cash flow have reached a new high since 2007, and with the new mainframe and other businesses driven, Revenue will remain high in a short period of time.
What's interesting is, When Intel's plans to buy Altera came out in 2015, there were rumors that Sellings planned to buy AMD counter-attack. In just a few years, the buyers and sellers moved in AMD to turn over.
Another background is that because of the ban, Sellings has lost many Chinese customers like Huawei, which has hit its performance. According to reports in february, mr. selings made the latest round of layoffs, widely believed to be linked to a government ban on Huawei.
From a financial point of view, this may be the best time to buy. At that time, amd acquired ATI because it was forced to acquire ATI when the financial situation was not sufficient. As a result, the company entered a financial crisis, was heavily in debt, and laid off workers continuously, which failed to make the acquisition play its due effect. At present, AMD's situation is much better than it was a decade ago.
However, financial health is only a necessary and inadequate condition. Although it may not have the same influence as arm's acquisition, AMD will still face many obstacles if it wants to successfully swallow Xilinx.
For example, Nvidia and Arm, not only in the face of regulatory pressure, industry competitors also opposed. Many sources, including Intel, Qualcomm and Tesla, have opposed Nvidia's Arm acquisition and plan to express their concerns to U.S. and global authorities, foreign media fudzilla reported.
Whether the regulatory authorities can let go, whether competitors will step in, and, most importantly, whether Xilinx will agree to this deal are all the issues that are in front of us.
In short, given their respective positions in the industry, this is still a far-reaching acquisition of the industry. The semiconductor industry has entered a
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Original link:Lei Feng net