AMD has reached an agreement to buy Xilinx for $35 billion, as AMD continues to gain ground against Intel.

In early October, news broke that AMD was in talks to buy Xilinx. Xilinx specializes in making chips for the telecommunications industry, although it has also expanded to the datacenter market, a lucrative field where Intel has long been dominant.

In recent years, especially with its Ryzen line of chips, AMD has been chipping away at Intel’s lead in the semiconductor business. The acquisition of Xilinx should help it do so even more.

“Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry’s high performance computing leader and partner of choice for the largest and most important technology companies in the world,” AMD President and CEO Dr. Lisa Su said. “This is truly a compelling combination that will create significant value for all stakeholders, including AMD and Xilinx shareholders who will benefit from the future growth and upside potential of the combined company. The Xilinx team is one of the strongest in the industry and we are thrilled to welcome them to the AMD family. By combining our world-class engineering teams and deep domain expertise, we will create an industry leader with the vision, talent and scale to define the future of high performance computing.”

“We are excited to join the AMD family. Our shared cultures of innovation, excellence and collaboration make this an ideal combination. Together, we will lead the new era of high performance and adaptive computing,” said Victor Peng, Xilinx president and CEO. “Our leading FPGAs, Adaptive SoCs, accelerator and SmartNIC solutions enable innovation from the cloud, to the edge and end devices. We empower our customers to deploy differentiated platforms to market faster, and with optimal efficiency and performance. Joining together with AMD will help accelerate growth in our data center business and enable us to pursue a broader customer base across more markets.”

The deal was unanimously approved by the boards of both companies and is expected to close by the end of 2021.