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editorial International 2020 Elektronik 3 Frank Riemenschneider Chefredakteur Twitter @RiemenschnF friemenschneider@wekafachmedien de AMD wants to swallow Xilinx According to a report in the Wall Street Journal x86 processor manufacturer AMD plans to take over FPGA SoC manufacturer Xilinx for 30 billion dollars after Intel had already bought corresponding FPGA products into the company in 2015 by purchasing Altera Products from Xilinx traditionally targeted different markets such as telecom munications and automotive but for two years now there has been a clear strategy Data Center First In 2018 the Alveo accelerator cards were introduced to support applications ranging from data storage and data analysis to machine learning and video streaming Telecommunications and 5G are another strategic area for Xilinx In September 2020 Xilinx announced a new product called the T1 Telco Accelerator Card for distributed O-RAN units and virtual baseband units in 5G networks With its new Zen CPUs and EPYC server processors based on them combined with Intels current manufacturing issues AMD has now gained a doubledigit percentage market share in the data center with market capitalization currently around $100 billion This should make the acquisition financially viable after AMD was close to bankruptcy when CEO Dr Lisa Su took office in 2014 Xilinx has been a strategic technology partner of AMD in the data center in recent years When the second generation of EPYC processors came on the market it was the first company to offer CPUs with PCIe 4 0 connectivity which finally allowed Alveos PCIe 4 0-compliant cards to take advantage of their higher data throughput They jointly developed a deep learning solution to demonstrate the benefits of EPYCs direct PCIe connections for superior inferential performance in machine learning This allows users to easily mix and match accelerators with CPUbased solutions to maximize overall throughput and minimize latency Apurchase of Xilinx by AMD would be a perfect winwin situation as both current strategies and technologies complement each other very well In the data center superior x86 CPUs combined with marketleading accelerator chips from Xilinx would be available for e g AI deep learning applications but there are also numerous synergies for telecom applications and 5G On the other hand the acquisition would probably be bad news for industrial customers who are currently using lowend FPGAs It is doubtful that AMD would be very interested in driving further developments in these lowmargin markets Because Altera has been bought by Intel which is also data centercentric the alternatives on the market in the lowend sector would probably be rather limited in the future