Xilinx working with Barclays to acquire Mellanox, deal could be announced in ...

Eyal Waldman, President and CEO of Mellanox Technologies poses for a photograph at the company's headquarters in Yokneam, in northern Israel July 26, 2016.

Xilinx has hired Barclays to advise on a bid to acquire Mellanox after approaching the chipmaker with an offer, according to people familiar with the matter, continuing a trend of consolidation in the semiconductor industry.

Xilinx, which has a market valuation of more than $22 billion, has largely watched from the sidelines as its rivals and peers in the semiconductor industry have consolidated.

Xilinx, like Altera (now named Intel PSG), makes field-programmable gate array (FPGA) chips that are in used in circuit boards in data centers that run search algorithms and power artificial intelligence.

Mellanox reached a settlement with activist investor Starboard Value earlier this year that placed three new directors on its board.

But as Piper Jaffray notes, Intel is still searching for a permanent CEO and Broadcom just closed its $19 billion acquisition of CA Technologies this week.

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