AMD closed a 49 billion deal earlier this year, acquiring Xilinx to build the most advanced FGPA products by combining the resources of both companies. However, as the latest news boils up, AMD is increasing the prices of Xilinx-based FGPA.
The price hike will be put into effect at the beginning of 2023, as conveyed by Victor Peng, President of the Adaptive and Embedded Computing Group at AMD, to supply chain customers through an official letter. The letter which was reported by Kuai technologies reads the following:
Effective January 9th 2023, we will be increasing prices by 8% across Xilinx’s products except Versal Series products, which will not get an increase at this time, and Spartan 6 products, which will receive a 25% increase.
AMD has cited the COVID 19 supply chain issues to be the main reason behind the increase in the price of Xilinx-based FGPA products. The disruption in the supply chain caused the global shipping lines to come to a complete halt, which drove the demand for products astronomically high.
The high demand and lack of supply result in companies, including AMD suffering from a massive order backlog. AMD claims many serious consequences are averted; however, a price hike is inevitable, deeming uncertain conditions.
Field Programmable Gate Array (FGPA) products are used in high-value industries like aerospace, defense, ASIC prototyping, data centers, medical, video and image processing, automotive, and other specialized industries focusing on complex and high-speed computing.
Customers are also likely to face delays in their orders, confirms AMD. The wait time for AMD’s Xilinx 16nm Ultrascale+, 20nm Ultrascale series, and 28nm 7 series are expected to be delayed by twenty weeks. AMD’s 45nm Spartan 6 and 7nm Versal series have no changes to their lead times and will adhere to the original delivery schedule. The wait time for AMD Xilinx FGPA products will last up to the second quarter of 2023.
AMD is not alone in increasing the price of FGPA products
AMD is not the only manufacturer that is suffering from supply chain issues. In July this year, Intel also reached out to its customers and suggested a price hike of FGPA could take place. However, the price hike of Intel FGPA products is expected in the last quarter of 2023, with the company citing a date of October 9th. The FGPA product industry is going a change a lot going into 2023, and we can expect more news to follow suit.