AMD is reportedly in advanced talks to buy rival chipmaker Xilinx for over $30 billion in a deal that could shake up the semiconductor industry

Advanced Micro Devices (AMD) is in advanced talks to buy rival chipmaker Xilinx in a deal that could be valued at more than $30 billion, the Wall Street Journal (WSJ) reported Thursday night. Citing people familiar with the matter, WSJ said the two companies are discussing a deal that could come together as soon as next week. A spokeswoman for Xilinx declined to comment on the WSJ’s story. If the deal goes through, it could mark the latest big tie-up in the rapidly consolidating semiconductor industry.

The San Francisco-based Xilinx makes programmable chips used in data centers to speed up tasks such as artificial intelligence work and in 5G telecommunications base stations. Its solutions include advanced integrated circuits, software design tools, predefined system functions are delivered as intellectual property cores, design services, customer training, field engineering, and technical support services. The company’s programmable logic devices include field-programmable gate arrays and complex programmable logic devices that customers program to perform desired logic functions.

Xilinx’s products are used by electronic equipment manufacturers in industrial, consumer, automotive, and data processing markets. It also provides Xilinx ISE, an integrated software environment, integrates with a range of third-party electronic design automation software offerings; solutions for the areas of DSP and embedded processing for solving system-level problems of non-traditional users, such as system architects and software engineers; programmable and in-system programmable storage devices to configure Xilinx FPGAs; and education, design, and support services.

While AMD has seen a higher usage of its products in recent years, Xilinx’s business suffered a major setback in 2019 after its key customer, Huawei Technologies Ltd, was blacklisted by the U.S. officials, preventing it from buying chips from U.S. companies. The growing demands for AMD products are 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.