Infineon and Marvell Technology, Inc. have entered into a definitive transaction agreement for a purchase price of US$2.5 billion in cash.
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Ethernet is a key enabling technology for low-latency, high-bandwidth communication, which is crucial for software-defined vehicles.
Additionally, it has significant potential in adjacent fields of use such as humanoid robots.
The planned investment will strengthen Infineon's already strong footprint in the U.S., including extensive R&D activities.
Marvell's leading Brightlane Automotive Ethernet portfolio of PHY transceivers, switches and bridges supports network data rates ranging from today's 100 Mbps (megabits per second) up to market-leading 10 Gbps (gigabits per second).
It also supports the security and safety features required for today's and tomorrow's in-vehicle networks.
Among the customers of Marvell's Automotive Ethernet business are more than 50 automotive manufacturers, including eight of the ten leading OEMs.
The business is expected to generate revenue of US$225 – US$250 million in the 2025 calendar year with a gross margin of around 60%, based on the strong potential for further acceleration through Infineon's unmatched access to global automotive customers.
Additional cost synergies are expected from combining R&D forces and leveraging Infineon production reach.
After the transaction closes, Marvell's Automotive Ethernet business will become part of Infineon's Automotive division.
Ethernet connectivity solutions are vital to software-defined vehicles and are the basis for highly efficient E/E-architectures comprising central compute, zones and endpoints.
Sophisticated features such as advanced driver-assistance systems, autonomous driving, and over-the-air software updates require massive amounts of secure data processing, networking and storage.
The combination with the Infineon AURIX microcontroller family creates a comprehensive product offering combining communications solutions as well as real-time control.
Infineon will use existing liquidity and will incur additional debt in order to fund the planned acquisition of Marvell's Automotive Ethernet business in an all-cash transaction.
Infineon has secured acquisition financing from banks.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close within calendar year 2025. ■
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