Germany-based chipmaker Infineon Technologies has completed the purchase of Marvell Technology's Automotive Ethernet business for a total of $2.5bn in cash.

The deal, initially announced in April this year, has now cleared all regulatory hurdles.

This strategic move bolsters Infineon's capabilities in the burgeoning market for software-defined vehicles (SDVs) and enhances its standing in the automotive microcontroller sphere.

According to Infineon, ethernet technology is instrumental in facilitating swift and efficient data transfer among various vehicle components. It is particularly critical for the functionality of SDVs.

By integrating Marvell's Automotive Ethernet offerings, which include PHY transceivers, bridges, and switches, Infineon aims to deliver a robust suite of solutions to its clientele.

These products are essential for the underlying communication systems in SDVs, offering networking capabilities that range from 100Mbps to 10Gbps, along with the requisite security and safety features.

The acquired business boasts a design-win pipeline projected to be worth approximately $4bn by 2030, and it is anticipated to generate revenues between $225m and $250m this calendar year, with a gross margin near 60%.

Infineon has financed this acquisition through a mix of readily available funds and new debt, with financial backing secured from banking institutions.

The company is poised to further develop its Ethernet business, fostering innovation and swiftly translating it into customer benefits.

Infineon noted that a dedicated "Ethernet Solutions" business line has been established within its automotive division to centralise expertise in this area.

Moreover, the acquisition is expected to reinforce Infineon's footprint in the US market, particularly in the realms of research and development activities.

Marvell Technology CEO and chairman Matt Murphy said: “Through relentless innovation and deep partnerships across the automotive industry, they’ve established a leadership position in this critical technology area. Infineon is the right company to take this business to the next level – with the scale, portfolio breadth, and customer reach to unlock its full potential.

“We’re confident this move will create exciting opportunities for continued growth, and we look forward to seeing the team thrive as part of Infineon.”