According to sources, the negotiations are at an advanced stage and the companies could reach an agreement as early as next week. However, some sources point out that it is still uncertain whether an agreement will actually be reached.
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The market value of AMD now exceeds $ 100 billion, the price of the company’s shares has risen by almost 90 percent since the beginning of this year. The covid-19 pandemic has increased demand for personal computers, game consoles and other devices that use AMD chips.
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It is the strong rise in AMD’s share price that could persuade the company to finance the acquisition with its shares. The market value of Xilinx is now around $ 26 billion, the price of its shares has risen by about nine percent since the beginning of the year.
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AMD manufactures chips for desktop and laptop computers as well as for gaming devices such as the Xbox and PlayStation. Xilinx chips are used in wireless communications, data centers, and industries such as the automotive industry.
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The acquisition of Xilinx would help AMD compete with the larger rival Intel and secure a stronger position in the fast-growing markets for chips for the telecommunications and armaments industries, the US newspaper wrote.
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