(Bloomberg) Shares of Xilinx rose more than 8% on Thursday after Chinese regulators approved its $35 billion acquisition by Advanced Micro Devices Inc.
The deal, which was unveiled in 2020, was intended to help AMD challenge Intel in the chip sector.
Xilinx is expected to propel AMD into areas including automotive and communications networking while also intensifying its competitiveness in cloud data.
China’s State Administration for Market Regulation said that AMD should not discriminate against Chinese clients and must allow Xilinx to continue supplying its products to the country.
The approval is now seen to wither fears that China could thwart mega deals in semiconductors amid the growing shortages of components. China, together with Japan and the US, are already racing to protect chip technologies and the domestic production chains.
The deal, which already got the nod of the US, UK, and Europe, is expected to be one of the biggest in the semiconductor industry.
XLNX: NASDAQ is up +8.07%, AMD: NASDAQ is up +0.94%.
