Infineon Technologies has acquired Marvell Technology's automotive Ethernet business unit to accelerate the development of software-defined vehicles. With this acquisition, Infineon is expected to further strengthen its position as the global leader in automotive microcontrollers and expand into the future IoT application market.

Infineon and Marvell Technology, Inc. (NASDAQ: MRVL) announced today that they have entered into an agreement to acquire Infineon in a $2.5 billion cash transaction.

The transaction is subject to regulatory approval.

Marvell's automotive Ethernet technology is a key element in delivering high bandwidth and low latency in in-vehicle networks, playing a vital role in enabling software-defined vehicles.

It also has great potential for use in various IoT applications, such as humanoid robots in adjacent industries.

“This acquisition is a highly strategic move for Infineon, the global leader in automotive semiconductor solutions,” said Jochen Hanebeck, CEO of Infineon. “Combining Marvell’s leading Ethernet technology with Infineon’s broad product portfolio will enable us to deliver even more innovative solutions.”

Marvell's Brightlane™ Automotive Ethernet portfolio includes PHY transceivers, switches, and bridges supporting network speeds from 100 Mbps to 10 Gbps.

Additionally, it is expected to play an important role in the internal networks of current and future vehicles with enhanced security and safety features.It works.

With this acquisition, Infineon will be able to combine its existing AURIX™ microcontroller family with Marvell’s Ethernet technology to offer real-time control and communication solutions. This is a major step forward in providing automotive manufacturers with more comprehensive and powerful system capabilities.

Marvell’s Automotive Ethernet business unit works with more than 50 global automakers and counts eight of the world’s top 10 automotive OEMs as customers. With a design-win pipeline of approximately $4 billion through 2030, there is significant potential for future revenue growth.

With this acquisition, Infineon expects revenues of $225-250 million and a gross margin of approximately 60% in fiscal year 2025.

Additionally, additional cost savings are expected by combining R&D personnel and leveraging Infineon's production capabilities.

Highly efficient E/E architecture is essential for implementing software-defined vehicles. Ethernet-based networks enable massive data processing and storage for next-generation automotive technologies such as advanced driver assistance systems (ADAS), autonomous driving, and over-the-air software updates (OTA). This acquisition is expected to further solidify Infineon’s leading position in related technologies.

Infineon intends to complete the acquisition entirely in cash, with existing liquidity and additional debt financing. The transaction is expected to close by 2025, subject to customary conditions including regulatory approvals.