Advanced Micro Devices Inc. today announced it has agreed preliminary takeover terms with the management of Xilinx, a San Jose-based technology company and a household name in the field of dynamic processing platforms.

The kind that AMD itself has been pursuing as part of its never-ending growth ambitions in recent years. By acquiring its rival of 36 years, AMD is hoping to double down on its chipmaking efforts in a number of sprawling markets such as connected vehicles, embedded computers, and aerospace processing, according to a prepared statement from the company.

The deal can easily be interpreted as a response to NVIDIA’s $40 billion acquisition of silicon architecture veterans at ARM which AMD’s fiercest rival proposed back in September. With that said, both conglomerates have a long road toward regulatory approvals ahead of them. AMD appears to have been more aggressive among the two in terms of M&A structuring, having confirmed the Xilinx acquisition would be an all-stock deal.

Not only does that facilitate compensation but even improves the companies’ odds of having the deal greenlit by U.S. regulators, according to Washington’s track record of antitrust reviews. A combined entity composed of AMD and Xilinx will number in excess of 13,000 employees acroos the world, the two companies estimated.

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