China OKs Advanced Micro Devices’ Purchase Of Xilinx With Conditions

The State Administration for Market Regulation (SAMR), China’s market regulator, announced on Thursday, January 27, its decision on an antitrust review that conditionally approves Advanced Micro Devices’ planned purchase of Xilinx.

The restrictive conditions will be effective for 6 years, after which the regulator will decide whether to remove them according to Advanced Micro Devices’ applications and share of the market, read a notice published by the SAMR on Thursday.

Among the conditions, the regulator demanded that no differential treatment should be provided to customers, in terms of price, delivery time, and after-sales service, among other transaction conditions.

Some speculated that the acquisition has or may have the effect of restricting or eliminating competition in the global and domestic integrated circuit markets. However, after the assessment, the SAMR stated that the commitment plan proposed by the company on January 13 on additional restrictive conditions can reduce the adverse impact of the acquisition.

Other concerns were based on the fact that it is difficult for new competitors to be visible in the market in the short term and consolidate an effective competition since the industry requires large amounts of money and time.

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