US-based firm AMD which develops computer processors is buying Xilinx for $35 billion in an all-stock deal that will combine the two Silicon Valley chip makers.

The deal announced Tuesday puts AMD in a place it wants to be; competing more fiercely with Intel.

Xilinx stockholders will receive 1.7234 shares of AMD stock for each Xilinx share they hold, or approximately $143 per share of Xilinx stock.

AMD stockholders will own about 74% of the combined company, with Xilinx stockholders owning approximately 26%.

Also Read: Trend Micro reveals key ways to disrupt underground hosting business

The transaction will give AMD a strong portfolio of high performance processor technologies, combining CPUs, GPUs, FPGAs, Adaptive SoCs and deep software expertise to enable leadership computing platforms for cloud, edge and end devices.

The deal is expected to close by the end of next year. It still needs approval from shareholders of both companies.