Germany-based chipmaker Infineon Technologies is set to enhance its automotive systems capabilities with the acquisition of Marvell Technology’s Automotive Ethernet business.
The deal, valued at $2.5bn in cash, is expected to complement Infineon’s position in the automotive microcontroller market.
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Marvell’s Automotive Ethernet portfolio, known for its Brightlane products, includes PHY transceivers, switches, and bridges, supporting data rates from 100Mbps to a market-leading 10Gbps.
This technology is said to be vital for the safety and security features required in modern in-vehicle networks.
The acquisition is expected to bolster Infineon’s presence in the US, where it already has R&D operations, and could extend into related areas such as humanoid robots.
Marvell’s Automotive Ethernet business customers include over 50 car manufacturers, including eight of the top ten OEMs.
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By GlobalDataThe business boasts a design-win pipeline worth approximately $4bn until 2030 and a “strong innovation” roadmap.
With expected revenues of $225m to $250m in 2025 and a gross margin of around 60%, the acquisition is set to accelerate revenue growth, leveraging Infineon’s global reach in the automotive sector.
The transaction will see Marvell’s Automotive Ethernet business integrated into Infineon’s Automotive division, bringing hundreds of skilled employees across the US, Germany, and Asia.
This move will combine Marvell’s communications solutions with Infineon’s AURIX microcontroller family.
Infineon CEO Jochen Hanebeck said: “The acquisition is a great strategic fit for Infineon as the global number one provider of semiconductor solutions to the automotive industry.
“We will leverage this highly complementary Ethernet technology by combining it with our existing, broad product portfolio to provide our customers with even more comprehensive, leading solutions for software-defined vehicles.
“The transaction will support our profitable growth strategy going forward, including new opportunities in the field of physical AI such as humanoid robots.”
To fund the acquisition, Infineon plans to use existing liquidity and incur additional debt, with financing secured from banks.
Contingent upon customary closing conditions including regulatory approvals, the transaction is planned to be completed within the 2025 calendar year.
