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Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) has completed the acquisition of Marvell Technology, Inc.’s (NASDAQ: MRVL) Automotive Ethernet business.
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“This transaction significantly reinforces our number one position in automotive semiconductors and strengthens our strategy of profitable growth” said Jochen Hanebeck, CEO of Infineon.
“With an even more comprehensive portfolio, we are driving the transformation to software-defined vehicles together with our customers and partners.
Acquisition creates new opportunities
In addition, the acquisition creates new opportunities in the field of physical AI, such as humanoid robots. We are excited to welcome several hundred highly skilled and motivated employees to the Infineon team and look forward to elevating the use of Ethernet technology to new scales.”
Ethernet is a key enabling technology for low-latency, high-bandwidth communication. It quickly and reliably transfers large amounts of data between components such as microcontrollers, processors and sensors. This makes it crucial for software-defined vehicles and, additionally, it has significant potential in adjacent fields of use such as humanoid robots.
The transaction will allow Infineon to provide its customers with even more comprehensive solutions, combining the strengths of Marvell’s Automotive Ethernet portfolio with Infineon’s existing microcontroller and system expertise.
“We’re incredibly proud of what our team has achieved in building a world-class Automotive Ethernet business,” said Matt Murphy, Chairman and CEO of Marvell.
“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.”
Ethernet: Backbone of communication for E/E-architectures
Ethernet connectivity solutions are vital to software-defined vehicles as they are the backbone of communication for E/E-architectures. Marvell’s Brightlane(TM) Automotive Ethernet portfolio, comprising PHY transceivers, switches, and bridges, delivers high-performance networking capabilities, supporting data rates from 100 Mbps to 10 Gbps, and provides the necessary security and safety features for both current and future in-vehicle networks.
The business’ design-win pipeline of around $4 billion by 2030 and strong innovation roadmap offers significant potential for future revenue growth. In the calendar year 2025, the business is expected to generate revenue of US$225 – US$250 million with a gross margin of around 60 percent. The purchase price amounted to US$2.5 billion.
Infineon finances the acquisition through a combination of existing liquid funds and additional debt capital. The company has secured the acquisition financing from banks.
Infineon aims to further expand the newly acquired Ethernet business, by driving innovation and quickly converting it into customer value. The entire Ethernet competence will be bundled in a newly created “Ethernet Solutions” business line within Infineon’s Automotive division. The acquisition will further strengthen Infineon’s already strong presence in the US, including extensive activities in research and development.
