2.5 billion USD: Infineon to acquire Marvell's automotive Ethernet division
Infineon wants to enter the network business. The manufacturer is purchasing the basis for this for 2.5 billion US dollars.
Illustration of a network in a car that is distributed across various components.
(Image: Infineon)
The German semiconductor manufacturer Infineon is expected to take over the automotive Ethernet division of the US manufacturer Marvell. This includes Ethernet controllers for transfer rates of up to 10 Gbit/s, switches and bridges for translating Ethernet signals at transfer rates. Subject to the approval of the regulatory authorities, Infineon and Marvell intend to complete the takeover in the course of this year.
The deal will cost Infineon 2.5 billion US dollars in cash, the equivalent of just under 2.3 billion euros. The company wants to expand its range of technology primarily for car manufacturers, where Infineon is already the market leader for microcontrollers. In the future, the manufacturer could put together packages comprising microcontrollers, power semiconductors and network technology. Marvell's existing customers are said to include more than 50 car manufacturers, “including eight of the ten leading OEMs”. Infineon is also targeting robots as a new market.
Software-defined cars
In the press release on the takeover, Infineon focuses on the possibilities for so-called software-defined vehicles: “Complex functions such as driver assistance systems, autonomous driving and over-the-air software updates require the secure processing, networking, and storage of enormous amounts of data,” it says.
An Ethernet controller can receive a mobile phone signal from a modem, for example. A switch splits the connection between different components in the car as required. Bridges enable the direct connection of components to the network, such as cameras or processors.
Meanwhile, Marvell is focusing on the AI hardware business. Among other things, the company designs network technology with several hundred Gbit/s for large data centers. Marvell also helps industry giants to design their own ARM processors.
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Three locations change
If the authorities give the green light, several hundred employees based in Germany, the USA, and Asia will move from Marvell to Infineon. They will then become part of the Automotive Division.
Infineon expects the acquisition to generate additional revenue of between 225 million and 250 million US dollars in the 2025 calendar year. The gross margin of the Ethernet products is expected to be around 60 percent. Infineon intends to scale up sales in the future through its customer network.
(mma)