AMD's $47.7b purchase of Xilinx pushes 2020 towards record for chip deals

NEW YORK - Advanced Micro Devices' US$35 billion purchase of rival semiconductor maker Xilinx pushes 2020 towards a record year for chip deals, as large tech companies rush to consolidate in the increasingly competitive industry.

The highwater mark for semiconductor deals was reached in 2016, when US$122 billion in transactions were struck for the entire year. If acquisitions continue at the current pace, 2020 will easily top that level. The largest deal of 2016 was SoftBank Group's US$24 billion purchase of Arm. One adviser estimates that there are about 75 public chip companies now and that number could be cut in half because of consolidation in the next few years.

Buying San Francisco-based Xilinx gives AMD access to programmable chips for wireless telecommunication networks ahead of phone carriers' plans to build out high-speed fifth-generation mobile networks. It also helps the company expand further in the profitable market for data-center computer components, currently dominated by Intel Corp.

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