Advanced Micro Devices (AMD) is reportedly in advanced talks to buy rival chip maker Xilinx for more than US$30 billion, which could power up their data center business.
The deal by AMD may mark the latest big move in the semiconductor industry after rival NVIDIA bought chip designer Arm for a record US$40 billion.
AMD has seen a higher usage of its products recently, driven in part by an overall surge in chip demand due to a global shift to work from home, and market share gains from larger rival Intel.
US-based Xilinx makes programmable chips used in data centers to speed up tasks such as artificial intelligence work and in 5G telecommunications base stations.
The company’s business suffered a setback last year when key customer Huawei was blacklisted by US officials, preventing it from buying chips from US companies.
Government officials have since added other China-based companies, including some Xilinx customers, to the list. These restrictions have led to companies like ByteDance and Tencent selecting Singapore as an alternative to do business and tap into the growing Southeast Asia market.