Maybe one of the surest signs that things are starting to get back to normal is the M&A cycle firing up again in the semiconductor space. It had been quiet for a while, but then there was the July bid from Analog (ADI) for Maxim (MXIM) and then September’s Nvidia (NVDA) bid for Arm Holdings. Now the Wall Street Journal reports that there may be another significant M&A deal in the works, with Advanced Micro Devices (AMD) reportedly in “advanced talks” to acquire Xilinx (XLNX) for something north of $30 billion.
I’ve liked Xilinx’s business for a while, and I see some significant growth opportunities for the company in areas like data center and 5G, with specific drivers like server acceleration, SmartNICs, antennae, and O-RAN. The immediate overlap with AMD is a little sketchy at first glance, and the businesses are very different (different product cycles, different customer bases, different development processes, et al), but Xilinx would definitely fit in with AMD’s desire to grow the data center business, and FPGA companies are scarce assets.
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