On April 8, 2025, Infineon Technologies AG announced the acquisition of Marvell Technology’s Automotive Ethernet business for $2.5 billion in an all-cash deal, underscoring its strategic commitment to advancing in-vehicle networking and software-defined vehicle (SDV) architectures.

The transaction includes Marvell’s Brightlane™ product portfolio, featuring high-performance Ethernet PHYs, switches, and bridges. Upon completion, this business will be integrated into Infineon’s Automotive division. The acquired unit is expected to contribute $225 million to $250 million in revenue during calendar year 2025, with a gross margin close to 60%.

A Strategic Move to Power the Next Generation of Automotive Electronics

As vehicles evolve into intelligent, connected systems, high-bandwidth, low-latency communication infrastructure is becoming a critical enabler. This acquisition complements Infineon’s strength in microcontrollers and power semiconductors, particularly its AURIX™ MCU series, by adding a robust automotive Ethernet portfolio that supports data rates up to 10Gbps and future-ready in-vehicle security features.

“This transaction holds significant strategic importance for us,” said Jochen Hanebeck, CEO of Infineon.
“It allows us to offer a broader, highly integrated product portfolio for software-defined vehicles. We also see growth potential in adjacent markets, including physical AI applications like humanoid robotics.”

Marvell Shifts Focus to AI and Data Infrastructure

This deal comes as Marvell pivots its focus toward AI-optimized data infrastructure, where custom silicon and cloud data center solutions are taking center stage. In Q4 FY2025, Marvell’s data center end market accounted for 75% of its total revenue.

Matt Murphy, Chairman and CEO of Marvell, commented:
“We are proud of the growth and innovation achieved by our Automotive Ethernet business. Given the attractive valuation and Infineon’s automotive expertise, we believe this is the right path forward for the business and our shareholders.”

Highlights of the Transaction

• Purchase Price: $2.5 billion (all cash)

• Expected Closing: By end of 2025 (subject to customary regulatory approvals)

• Revenue Forecast: $225–$250 million in calendar year 2025

• Gross Margin: Close to 60%

• Customer Base: Over 50 OEMs, including 8 of the global top 10

• Long-term Design Wins: ~$4 billion in committed programs through 2030

Infineon plans to fund the acquisition through a mix of existing liquidity and new debt financing, which has already been secured. The transaction is expected to deliver synergies in product development and manufacturing scale, as well as expand Infineon’s influence across the U.S., Europe, and Asia.

About Infineon
Infineon Technologies AG is a global leader in semiconductor solutions that make life easier, safer, and greener. With a strong presence in automotive, industrial, and IoT markets, Infineon is at the forefront of enabling intelligent, connected systems.

About Marvell
Marvell Technology, Inc. delivers data infrastructure semiconductor solutions that enable the world’s data to move, store, process, and secure faster and more intelligently. Marvell’s focus includes cloud, 5G, and AI-centric chip platforms.