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Xilinx Deal to Sevemite AMD’s 4th Most Revenue Chip
In its own presentation on the deal with Xilinx, AMD named the notional value of the combined revenue of the combined company as of the end of September – $ 11.6 billion. TrendForce experts also gave their assessment of the deal. In their opinion, AMD will become the fourth largest developer of integrated circuits in terms of revenue.
According to the authors of the study, AMD and Xilinx together generated $ 9.965 billion in 2021. Given AMD’s propensity to increase its annual revenues by an average of 20%, it is easy to assume that soon after the merger with Xilinx it will be able to surpass MediaTek in terms of revenue, taking the fourth place in the ranking of the largest integrated circuit developers. It will be second only to Broadcom, Qualcomm and NVIDIA. The rating does not include companies that manufacture their own products – for example, Samsung Electronics or Intel.
According to TrendForce experts, Xilinx has experienced difficulties in increasing revenue over the past three quarters due to complications in relations between China and the United States. It cannot be ruled out that in the next year and a half, while the deal with AMD is being negotiated, the situation in the foreign trade arena will only get worse. In this case, the AMD leadership will have to show diplomatic talents in order to convince the authorities of the PRC and the United States of the favorable impact of the deal on the domestic market of both countries.
In addition to the expansion of sales markets that the merger with Xilinx will bring, AMD may gain a greater share in negotiations with TSMC, which produces the bulk of its products for it.