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Finance

Xilinx versus Intel—A Competition of Scale and Technology

When Intel acquired Altera in 2015, many analysts were concerned about the success of this acquisition, as Intel has a history of failed acquisitions. It recently spun off McAfee, which it acquired in 2010, as it failed to integrate security features at the silicon level.

Intel also tried to venture out of CPU and into the mobile processor and discrete GPU (graphics processing unit) technologies. However, its Atom mobile processors could not gain market share from Qualcomm’s (QCOM) ARM processors, forcing the former to exit the mobile processor market in 2016 with a $4 billion loss. Intel also tried to build discrete GPUs but did not succeed. It remains to be seen whether Intel’s FPGA-integrated server processors succeed.

In the meantime, Xilinx is leveraging its technology lead to get maximum design wins. As FPGA applications have long development cycles, a design win locks in revenues for several years. With this strategy, the company looks to increase its share in the PLD (programmable logic device) market from 58% in 2017 to 60%–65% in 2021.

Xilinx is investing heavily in new products to tap these growth verticals. Next, we’ll see how this investment is impacting its balance sheet.

View more information: https://marketrealist.com/2017/07/xilinx-versus-intel-a-competition-of-scale-and-technology/

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