News
According to a report from ijiwei, Marvell Technology has agreed to sell its Automotive Ethernet business to Infineon Technologies AG for USD 2.5 billion in cash. The deal includes Marvell’s Brightlane Automotive Ethernet portfolio and related assets, and is expected to close within calendar year 2025, as stated in a press release from Marvell.
As noted by Reuters, Marvell has firmly positioned itself as an AI-centric company, prioritizing custom silicon and networking solutions. Given this strategic direction, it’s understandable that automotive Ethernet is no longer a core focus.
The automotive sector has recently been a weak point in the semiconductor industry, partly due to slowing electric vehicle sales, as indicated by ijiwei. Meanwhile, Marvell has become a major player in data infrastructure, a segment that grew 78% in the fourth quarter. In comparison, its automotive and industrial segment rose by 4.1%, according to its financial report ending February 1, 2025.
In its press release, Infineon indicated that the acquired business is expected to generate between USD 225 million and USD 250 million in revenue in calendar year 2025, with an estimated gross margin of around 60%.
Infineon’s CEO stated that the company will leverage the acquired Ethernet technology to deliver advanced solutions for software-defined vehicles. The company also highlighted that Marvell’s Automotive Ethernet business currently serves more than 50 automotive manufacturers—underscoring its strong market presence and strategic value to Infineon’s automotive portfolio.
Additionally, the transaction is expected to create new opportunities in emerging fields such as physical AI, including humanoid robotics, as noted in Infineon’s press release.
To fund the all-cash acquisition, Infineon plans to use its existing liquidity and raise additional debt. Upon completion of the transaction, the acquired business will become part of Infineon’s Automotive division.
Infineon is scheduled to host a conference call and webcast for analysts and investors on Tuesday, April 8, as its press release indicates.
Read more
(Photo credit: Infineon)
