Infineon Acquires Automotive Ethernet Business from Marvell

Infineon Technologies AG has made a significant move in the automotive industry by entering into a definitive transaction agreement to acquire Marvell Technology’s Automotive Ethernet business for US$2.5 billion in cash. This strategic acquisition aims to accelerate Infineon’s system capabilities for software-defined vehicles. Once the transaction is finalized, Marvell’s Automotive Ethernet business will be integrated into Infineon’s Automotive division, enhancing its overall market position.

The acquisition will not only bolster Infineon’s presence in the U.S. but also complement its existing microcontroller business. Ethernet technology plays a crucial role in enabling low-latency, high-bandwidth communication, which is essential for various automotive applications, especially in the realm of software-defined vehicles. Moreover, the potential of Ethernet extends to other areas such as humanoid robots, showcasing its versatility and importance in modern technology.

Marvell’s renowned Brightlane™ Automotive Ethernet portfolio offers a range of PHY transceivers, switches, and bridges that support network data rates from 100 Mbps to an impressive 10 Gbps. These components are designed to meet the stringent security and safety requirements of current and future in-vehicle networks, ensuring reliable and efficient connectivity for automotive systems.

For software-defined vehicles, Ethernet connectivity serves as a foundational element for creating highly efficient E/E architectures, encompassing central compute, zones, and endpoints. The integration of Ethernet with Infineon’s AURIX™ microcontroller family results in a comprehensive product lineup that combines communication capabilities with real-time control functionalities. This synergy is crucial for implementing advanced features like driver-assistance systems, autonomous driving, and seamless software updates over the air.

Marvell’s Automotive Ethernet business has established partnerships with over 50 automotive manufacturers, including eight of the top ten OEMs. With a robust design-win pipeline valued at US$4 billion through 2030 and a promising revenue target of US$225 to US$250 million by 2025, the business is poised for substantial growth. Leveraging Infineon’s global automotive customer network, the acquisition is expected to drive synergies and cost efficiencies through collaborative R&D efforts and enhanced production capabilities.

As the transaction progresses, it is subject to customary closing conditions, including regulatory approvals, with an anticipated completion timeline within the calendar year 2025. This acquisition marks a significant milestone for both Infineon and Marvell, paving the way for enhanced innovation and technological advancements in the automotive industry.