A new set of American semiconductor leaders is rising, fueled by pandemic-driven demand for their chips that they are looking to parlay into blockbuster deals to disrupt an industry traditionally dominated by Intel Corp.
The U.S. chip industry has historically been a mix of niche players, midsize companies and Intel. But this year, Advanced Micro Devices Inc., long the underdog in the computer-processor market, and Nvidia Corp., a graphics-processing specialist, are mounting their biggest challenge yet to level the playing field.
AMD said Tuesday it would buy San Jose, Calif.-based chip maker Xilinx Inc. for $35 billion. AMD, best known for its personal-computer processors, is paying for the acquisition in stock after its shares soared almost 80% this year amid supercharged demand for videogames, PCs and servers that crunch data for companies.
Nvidia, whose shares have more than doubled this year, placed its bet in September by agreeing to buy chip-design specialist Arm Holdings from SoftBank Group Corp. for $40 billion in cash and stock, in what would be the industry’s largest deal to date. The transaction would extend Nvidia’s reach into the booming smartphone market where Arm-designed chips dominate.
The AMD and Nvidia transactions—which still need to pass regulatory scrutiny in the U.S. and abroad—would put those companies on a more even footing with Intel, America’s chip-making icon. AMD Chief Executive Lisa Su said being bigger is an advantage in a semiconductor landscape where development costs are rising and customers want more diverse types of chips.
The Link LonkOctober 29, 2020 at 02:42AM
https://ift.tt/2JaaXiF
AMD, Nvidia Chip Away at Intel’s Semiconductor Dominance - The Wall Street Journal
https://ift.tt/2ZDueh5
AMD
No comments:
Post a Comment