XLNX - Xilinx deal spread with AMD widens after reports on SMIC possible sanctions

Xilinx (NASDAQ:XLNX) shares fell 2.6% amid a report that the U.S. may put further sanctions on Chinese's biggest chipmaker as investors await a China decision on Advanced Micro Devices planned (NASDAQ:AMD) planned purchase of XLNX. The Xilinx/AMD deal spread widened to $23.88 from $28.89 yesterday after the Bloomberg report from late yesterday as riks/arb investors may be worried about what the China headlines may mean for approval of the deal. AMD gained 1.2%. At issue is the possibility that the Biden Administration will put new restrictions on the exportation of chip components to China's Semiconductor Manufacturing International (OTCQX:SMICY).  Such moves could end up impacting the likes of chip-equipment makers such as Applied Materials (NASDAQ:AMAT), KLA (NASDAQ:KLAC) and Lam Research (NASDAQ:LRCX) by limiting what products those companies can ship to SMIC. Separately, the FT reported that the Biden administration is said to be set to put eight Chinese companies on an investment blacklist. The U.S/China headlines come as the XLND/AMD deal

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Xilinx deal spread with AMD widens after reports on SMIC possible sanctions