Infineon to Acquire Marvell’s Automotive Ethernet Business for $2.5 Billion
Infineon Technologies AG has announced a definitive agreement to acquire Marvell Technology’s Automotive Ethernet business in a $2.5 billion all-cash deal. The acquisition includes Marvell’s Brightlane Automotive Ethernet product line and associated assets and is expected to significantly enhance Infineon’s capabilities in the fast-growing automotive connectivity space. The transaction is anticipated to close in 2025, pending regulatory approvals and customary closing conditions.
Marvell’s Automotive Ethernet division is forecasted to generate between $225 million and $250 million in revenue by fiscal year 2026, underscoring its increasing importance in the evolving mobility landscape. The acquisition aligns with Infineon’s strategy to lead in next-generation in-vehicle networking technologies, which are essential for software-defined vehicles and the growing demand for high-speed, low-latency communications in electric and autonomous vehicles.
Marvell Refocuses on Data Infrastructure
Marvell Chairman and CEO Matt Murphy highlighted that the company is increasingly centered on data infrastructure, with its data center business now contributing 75% of its revenue in the fourth quarter of fiscal year 2025. While the Automotive Ethernet segment has experienced strong organic growth, the divestiture supports Marvell’s strategic priorities and unlocks significant value for shareholders. Murphy also expressed confidence in Infineon’s ability to drive continued innovation and growth in the Ethernet portfolio, citing the company’s deep expertise in the automotive sector.
The acquisition reinforces Infineon’s commitment to the automotive industry and its broader goal of enabling the digital transformation of mobility through advanced semiconductor solutions.
