Infineon Completes Acquisition of Marvell’s Automotive Ethernet Business

According to foreign media reports, German chip manufacturer Infineon has recently completed the acquisition of Marvell Technology's automotive Ethernet business for a total cash consideration of $2.5 billion.

This transaction was initially announced in April this year and has now received all regulatory approvals.

This strategic initiative will enhance Infineon's competitiveness in the rapidly growing Software-Defined Vehicle (SDV) market and strengthen its position in the automotive microcontroller sector.

Image source: Marvell

Infineon stated that Ethernet technology plays an important role in facilitating fast and efficient data transmission between vehicle components, which is especially critical for realizing the functions of software-defined vehicles.

By integrating Marvell's automotive Ethernet products (including PHY transceivers, bridges, and switches), Infineon aims to offer customers a complete solution. These products are at the core of the underlying communication system for software-defined vehicles, providing network transmission capabilities from 100Mbps to 10Gbps, while also having the necessary security and protection features.

Infineon plans to further develop its Ethernet business through this acquisition, drive innovation, and quickly translate the results into customer benefits.

Infineon's acquired business is expected to have a design win pipeline of approximately $4 billion by 2030 and is anticipated to achieve revenue of $225 million to $250 million this year, with a gross margin close to 60%.

Infineon provided financial support for this acquisition through a combination of existing funds and new debt, and the related financing has been supported by banking institutions.

Infineon also stated that its automotive division has established a dedicated "Ethernet Solutions" business line to concentrate specialized resources in this area.

In addition, this acquisition is expected to strengthen Infineon's presence in the US market, especially in the field of research and development.

Matt Murphy, CEO and Chairman of Marvell Technology, stated: "Through continuous innovation and deep collaboration in the automotive industry, Marvell's automotive Ethernet business team has established a leading position in this critical technology field. Infineon is the right company to take this business to new heights—with its scale, extensive product portfolio, and customer reach capabilities, it is well-positioned to unleash the full potential of this business. We believe this acquisition initiative will create exciting opportunities for sustained growth, and we look forward to seeing this business thrive under Infineon."