Advanced Micro Devices Inc. plans to buy rival chip maker Xilinx Inc. in a $35 billion deal, adding momentum to the consolidation of the semiconductor industry that has only accelerated during the pandemic.

AMD and Xilinx on Tuesday said the companies reached an all-stock deal that would significantly expand their product range and markets and deliver a financial boost immediately on closing. The Wall Street Journal previously reported the two were close to an agreement.

The U.S. semiconductor industry is going through a seismic transformation, driven both by a wave of corporate transactions and a pandemic that has supercharged demand for some chips.

AMD’s planned purchase of Xilinx, which still must pass regulator scrutiny in the U.S. and abroad, would be one of the biggest among chip makers and would mark only the latest landmark proposed transaction in recent months. It comes just weeks after graphics chip-making giant Nvidia Corp. agreed to pay $40 billion for Arm Holdings, the British mobile-phone chip design giant backed by SoftBank Group Corp. , in what would be the industry’s biggest ever deal if it goes through.

That proposed tie-up landed after Analog Devices Inc. in July agreed to pay more than $20 billion for Maxim Integrated Products Inc.

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