On Tuesday, the U.

S chip designer said it had agreed to buy rival Xilinx.

The all stock deal is valued at $35 billion.

It will create a company with 13,000 engineers on an all outsourced manufacturing strategy.

AMG has Long Bean, Intel's big rival in the central processing units, or CPI, use that lie at the heart off personal computers.

But Chief Executive Lisa Su has focused on challenging Intel in the fast growing business off data centers to they're the vast computing hubs that power online applications and services.

Now, Sue says, a tie up with silence will boost its capability in that market.

The deal comes with a M D.

Already on the offensive, it seemed to have gained a lead over Intel in CPU performance.

That's helped it gain almost 1/5 of that market.

It's best share since 2013.

Both it and Xilinx use contract manufacturer TSMC to make their chips, and industry experts say the Taiwan firm is years ahead of Intel on manufacturing technology.

Tuesday also saw a M D report earnings earlier than expected.