Semiconductor designer Advanced Micro Devices (AMD) said it completed the purchase of Xilinx in a record chip industry deal valued at about $50 billion.
Recently, Nvidia abandoned its plans to buy SoftBank-owned Arm Ltd, due to regulatory hurdles.

AMD’s transaction moved ahead with all necessary approvals for the acquisition.

The deal, announced in October 2020, was originally valued at $35 billion, but the rise of AMD stock has pushed up the price tag, according to AMD.

“The purchase of Xilinx helps AMD capture a larger share of the approximately $135 billion market opportunity we see across cloud, edge and intelligent devices,” said AMD CEO Lisa Su in a statement.

The transaction comes as AMD intensifies its battle with Intel in the data center chip market. The combined company will have over 15,000 engineers and a completely outsourced manufacturing strategy that relies heavily on Taiwan Semiconductor Manufacturing (TSMC).

The two U.S. companies have benefited from a more nimble approach to grabbing market share from Intel, which has struggled with internal manufacturing.

AMD has long been Intel’s chief rival for central processor units (CPUs) in the personal computer business.

AMD’s Lisa Su will lead the combined company as chief executive, with Xilinx’s CEO Victor Peng as president of the newly formed Adaptive and Embedded Computing Group.

The companies expect the deal to generate $300 million in cost savings.