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AMD returns to deal making with $1.9 billion purchase of chip specialist Pensando
FOX Business Flash top headlines for April 4
Here are your FOX Business Flash top headlines for April 4.
Advanced Micro Devices Inc. plans to buy chip and software startup Pensando Systems Inc. for $1.9 billion, returning to the acquisition playbook shortly after closing its biggest-ever transaction.
The proposed deal, which AMD disclosed Monday, would add to its product palette as semiconductor vendors reposition their offerings to take advantage of growing demand for chips. Pensando would give AMD capabilities in the fields of networking, security and other services aimed at the data-center market, which has grown explosively as companies embrace digital tools.
Pensando, based in Milpitas, Calif., produces chips and software designed to speed data flow and lower operating costs for big server farms, AMD said.
AMD shares advanced 1.4% in midday trading on Monday.
NVIDIA CONSIDERS TEAMING UP WITH INTEL ON CHIP MANUFACTURING
There has been a rush of deal making in the chip industry in recent years, including AMD’s own $35 billion purchase of chip maker Xilinx Inc., which closed in February. Graphics-chip giant Nvidia Corp. pursued British chip-design firm Arm but called off the blockbuster transaction in February amid regulatory challenges. Chip maker Intel Corp. has sold its memory-chip business in China to South Korea’s SK Hynix Inc. Qualcomm Inc. on Monday said it closed a previously agreed deal that gives it control of driver-assistance-technology company Arriver, previously a unit of Swedish autonomous-driving specialist Veoneer.