Some time ago, the big Mac led by Lao Huang, “Nveda and ARM” came in a raging way, stirring up the global semiconductor industry. You sing me off. A few days ago, the semiconductor industry ushered in another wave of tremors. AMD has officially announced that it has reached a final agreement with FPGA chip leader Selings to acquire it.
Photo credit: AMD.com
AMD issued a $35 billion share purchase of Selings, compared with NVIDIA’s $21.5 billion in NVIDIA common stock and $12 billion in cash.
But given AMD’s size, the stock is now worth just $90 billion ($300 billion), and AMD is thinking big for Seling.
Photo credit: Snowball App
So why is Selings worth so much money (stocks)? Why did AMD buy it? What is the impact on the semiconductor industry?
Selings, who nearly bought AMD that year, is now being counter-accepted
What does Cyrus do? Maybe a lot of people will have this question.
In China, the more well-known event about Selings should take place in 2018. That year, Selings announced the acquisition of Shenzhen Technology, a star start-up in China’s AI chip sector. The techno-scic gave the nickname “China’s Indida”.
Photo credit: Sina.com
Judging by AMD’s announcement, Xilinx has developed a highly flexible adaptive processing platform that supports rapid innovation in technologies from the cloud to the edge to the endpoint. The inventor of FPGA and Adaptive SoC, it is designed to deliver the industry’s most dynamic processor technology. At the same time, Selings is the world’s largest manufacturer of programmable chips (FPGAs).
Photo credit: Cyrus.com
What is FPGA? FPGA is a chipset that can be reprogrammed after manufacturing. Different from CPUs and GPUs, CPU and GPU chips are fixed circuits, FPGAs are semi-fixed circuits, and their circuits can be re-constructed programmatically to achieve different functions.
Specifically, FPGAs are of great use.
FGPA chip technology is mainly used in cloud computing, 5G communications, radar and other fields, there are more mature application markets. What’s more, it has application potential in many decentralized computing scenarios, such as on-board systems, industrial control systems, video codec acceleration cards… It can be said that the future has great potential.
Photo credit: Baidu Encyclodedic
Today, the giants are exploring the potential of the FPGA, and AMD will naturally have a piece of the pie.
In the FPGA field, Cyrus and Altera (acquired by Intel) are head (rivals) so far.
Now that there is a common enemy (AMD’s friend Intel, Serling’s friend Altera), join forces.
It’s worth noting that just a few years ago, when Intel acquired Altera, Selings was still in the middle of the day.
Many media have pointed out that Selings should buy AMD to fight Intel…
The PC market landscape is stabilizing AMD needs Cyring
Judging from AMD’s announcement of the acquisition of Selings:
Photo credit: AMD.com
1, expand AMD’s fast-growing data center business
2, Xilinx is the number one provider of adaptive computing solutions, raising AMD TAM’s revenue to $110 billion
3, immediately increase AMD profit margin, cash flow and earnings per share
4. The total value of all stock trading companies is about $135 billion
Basically, there are two points: to increase business growth and revenue. Corporate income is the inevitable result of strong union, the key point is business growth.
AMD has had a lot of success in the processor sector in recent years, even overpowering its old rival Intel for years, and most of AMD’s revenue comes from processors and graphics graphics cards, and if you look closely at AMD’s earnings, we can think of processor and graphics business as accounting for nearly 60% of AMD’s revenue.
Despite the two years of “AMD, yes” is not out of the question, but there is no denying AMD in the PC market “second-in-command” image.
The CPU catches up with Intel, while the graphics card catches up with InDida.
However, the PC market has stagnated or even shrunk over the past 10 years (the cause of this year’s outbreak has picked up slightly, but is still not hot), so AMD’s imagination of the future is limited if it can’t open up new markets. After all, there’s intel ahead.
Since one track cake is limited, expand one more track.
Intel’s acquisition of Altera, Avda’s acquisition of ARM, and AMD’s acquisition of Selings, have all three major vendors targeting the huge market for data centers.
According to media reports, the best growth market is the data center/server as the representative of the industry chip market, especially artificial intelligence-related hardware market growth is quite rapid, its market size is expected to double from 2018 to 2024.
In fact, AMD has been trying to expand into the server market in recent years. In the server market, AMD processor share has increased from 1% to 8% between 2017 and 2019, and is expected to reach 10% this year, with very strong momentum. Xilinx is buying Xilinx in an interest in using its FPGAs to enter the industry market, especially the artificial intelligence/server market.
Photo credit: AMD.com
This is exactly what amD Bulletin pioneered as “expanding AMD’s fast-growing data center business.”
Upon completion of the transaction by the end of 2021, ADM will have 13,000 engineers, spend more than $2.7 billion annually on research and development, and will have a higher level of data center capacity.
AMD has taken a wider path since acquiring Selings
On the original track, AMD’s advantage is still clear and it maintains a certain lead. In terms of CPUs, for example, AMD outsources its most advanced chips to TSMC. When Intel’s 10nm process was delayed again, many products on the market were already equipped with AMD chips for 7nm process chips. On the GPU side, AMD has updated the next generation of desktop graphics cards, RX 6800, RX 6800XT, and RX 6900XT, a few days ago to the new series of new graphics cards for the N.VD. RTX3000 series. Performance hard just in Vida, but in terms of selling price is still conscience. The 6800XT sells for $649, $50 cheaper than the 3080 graphics card…
As a technology company that develops both CPU and graphics cards, AMD has been under pressure from the industry’s two giants for years, but is now showing great strength.
In addition to the CPU-GPU, AMD has added fPGA as a new weapon, which will not only greatly strengthen AMD’s business in the data center, but also allow AMD to enter more new areas in the future: homeopathic self-driving, 5G communications, artificial intelligence, neural networks, etc.
The data center processor market of the future has clearly shown a three-way pattern trend:
Traditional giants Intel (acquiring Altera), out-of-the-box AMD (acquiring Selings), and sword-walking inflection in Vedda (acquiring Arm).
This three-legged situation was hard to imagine five or six years ago.
At that time, AMD’s share price fell below $2 and was described as a failed company.
At the time, it was rumoured that Selings was buying AMD.