The logo of Advanced Micro Devices, Inc, an American multinational semiconductor company. Photo: AFP

Advanced Micro Devices said Tuesday it had finalized a deal to buy computer chip-making rival Xilinx in a transaction worth US$35 billion, further consolidating the industry.

“AMD today announced they have entered into a definitive agreement for AMD to acquire Xilinx in an all-stock transaction valued at $35 billion,” the company said in a statement.

“The combination will create the industry’s leading high-performance computing company, significantly expanding the breadth of AMD’s product portfolio and customer set across diverse growth markets where Xilinx is an established leader.”

AMD is one of the largest semiconductor firms, specializing in processors for personal computers, servers and gaming.

AMD revenue has climbed this year, with the Covid-19 pandemic fueling demand for computers and video game consoles as people rely on the internet to work, learn and play more at home.

Xilinx, founded in 1984, is known for adaptive chip processing systems used in an array of industries including telecommunications, automotive and defense.

“Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry’s high-performance computing leader,” AMD CEO Lisa Su said.

“This is truly a compelling combination that will create significant value for all stakeholders, including AMD and Xilinx shareholders who will benefit from the future growth and upside potential of the combined company.”