According to media reports, industry insiders say Xilinx is preparing to acquire Mellanox, a leading provider of server and storage end-to-end connectivity solutions based in Santa Clara, California.

The market value of Xilinx is more than $22 billion. The market has speculated that a larger chip maker may launch an acquisition for Xilinx. This speculation has deepened after Intel acquired Altera in 2015. Like Altera, which has been renamed Intel PSG, Xilinx also manufactures FPGA chips for use in integrated circuits that run search algorithms and data centers that support artificial intelligence (AI). Mellanox's main business includes selling network hardware for data centers and cables for connecting switches and other hardware, if Xilinx successfully acquires Mellanox, it will get more products for sale in the data center market.

The industry also stressed that the acquisition will not be reached in the near future and may end in failure. However, if the transaction can be finally achieved, it is expected to be announced in December.