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Amd also wants to invest money to buy semiconductor industry into harvest time?

via:虎嗅网     time:2020/10/11 22:54:56     readed:739

Will the semiconductor industry enter 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 people familiar with the matter on Thursday nightnewsAMD is in deep negotiations to acquire Xilinx, a programmable logic device manufacturerThe value of the deal could exceed $30 billion. Xilinx's share price rose 14.11%, while AMD's fell 3.94%.

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With the large demand for semiconductors in artificial intelligence, 5g, Internet of things and other fields, the industry has entered a cyclical boom. The giants are all fixedly looking at the next era.

What does 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.

Compared with ASIC, FPGA is semi customized, the design and development cycle is shorter, the speed and process of listing can be faster, because there is no "instruction" step, the cost of developing chip based on FPGA is higher than that of ASIC It is much lower. With the gradual failure of Moore's law, the performance of traditional processors can no longer be continuously improved. At this time, many companies began to deploy faster and lower cost FPGAs.

FPGA and ASIC development processes diffe

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 this point, you should also understand that AMD wants this deal, directly into those markets that Intel firmly controls. For AMD, the deal is significant and is likely to be the biggest deal for the semiconductor company since its acquisition of ATI in mid-2006.

The epidemic has brought a brief resplendence to the PC market. However, both inside and outside the industry clearly know that this is only temporary, and PC is still a sunset market,Amd light now yes is not enough, also need to look for the future imagination space. The data center and server market is obviously the answer, with rapid growth and huge industry space.

In 2016, Intel spent US $16.7 billion to acquire Altera, which was the second largest FPGA market share. Subsequently, Intel successfully combined its own CPU and FPGA. Obviously, this brought great pressure on AMD. If the pace is slower, it may lose the opportunity to catch up. In January this year, amd also recruited Dan McNamara, former senior vice president of Intel and head of FPGA business unit.

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?

We can also see that AMD's recent financial situation is really good, with a market value of about US $97.564 billion, while that of Xilinx is about US $29.5 billion.

Since the beginning of this year, the market value of AMD has soared by more than 80%, and the market value has exceeded 100 billion. In 2019, cash flow from operating activities and free cash flow have reached new highs since 2007, and with the drive of business such as new mainframe, the revenue will remain high in a short timeIt can be said that the current amd has the confidence to put forward the acquisition.Interestingly, when the news of Intel's plan to acquire Altera came out in 2015, there was also a rumor that Xilinx planned to buy AMD to fight back. In a few years, the buyer and the seller changed sides, and AMD realized its turnaround.

Another background is that, due to the ban, Xilinx has lost many Chinese customers such as Huawei, which has caused a big blow to its performance. In February this year, it was reported that Xilinx had carried out the latest round of layoffs, which was generally believed to be related to the US government's 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.

Take NVIDIA and arm for example. They are not only under pressure from the regulatory authorities, but also opposed by their competitors in the industry. According to fudzilla, foreign media, several sources have disclosed that many technology companies, including Intel, Qualcomm and Tesla, oppose NVIDIA's arm acquisition and plan to express their concerns to relevant authorities in the United States and the world.

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.

All in all, given the position of both parties in the industry, this is still a far-reaching acquisition for the industry. The semiconductor industry has entered a "harvest period". In the face of vigorous opportunities in the future, the giants have no longer hidden their ambitions.

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