China Conditionally Approves AMD’s $35 Billion Xilinx Deal | Tech News

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SHANGHAI (Reuters) – China’s market regulator has conditionally approved semiconductor group Advanced Micro Devices Inc’s $35 billion equity deal for peer Xilinx, it said on Thursday. Beijing’s regulatory approval brings the purchase, first announced in October 2020, closer to completion. In a public notice, China’s State Administration for Market Regulation said it would approve the deal on the condition that AMD and Xilinx do not force product tying or discriminate against customers who purchase one set of products but not another. The regulator added that the newly merged entity must also ensure “the flexibility and programmability of Xilinx FPGAs” and “that their development methods are compatible with ARM-based processors.” It must also ensure that its GPU and FPGA products sold in China are interoperable with products in the Chinese market. The merger comes as AMD and Xilinx compete with Intel Corp to enter the data center chip market. Washington and Beijing have sometimes halted ongoing chip mergers by denying regulatory approval. In March 2021, Applied Materials Inc dropped its $2.2 billion plan to buy Japanese company Kokusai Electric Corp, citing a lack of regulatory approval from China. In December, U.S. chipmaker Magnachip Semiconductor Corp said it would end a $1.4 billion takeover plan for Chinese private equity firm Wise Road Capital following an investigation into the Agreement of the Washington Committee on Foreign Investment in the United States (CFIUS).

(Reporting by Brenda Goh and Josh Horwitz; Editing by Toby Chopra and Jan Harvey)

Copyright 2022 Thomson Reuters.

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