Infineon Technologies AG has entered into a definitive agreement to acquire Marvell Technology’s Automotive Ethernet business for $2.5 billion in cash. The acquisition, which includes Marvell’s Brightlane Automotive Ethernet portfolio and related assets, is expected to bolster Infineon’s position in the growing automotive connectivity market. Subject to regulatory approvals and standard closing conditions, the deal is projected to close in 2025.

Marvell’s Automotive Ethernet division is projected to generate between $225 million and $250 million in revenue by fiscal year 2026, highlighting its growing relevance in the mobility sector.

The transaction reflects Infineon’s intent to strengthen its role in next-generation in-vehicle networking, a critical component for software-defined vehicles and the increasing demand for high-bandwidth, low-latency communications within electric and autonomous platforms.

Marvell’s Data Center Revenue Hits 75%

Marvell Chairman and CEO Matt Murphy emphasized that the company has been evolving into a leading provider of data infrastructure solutions, with the data center segment now accounting for 75% of its fourth-quarter fiscal 2025 revenue. Murphy noted that while the Automotive Ethernet business has seen significant organic growth, the divestiture aligns with Marvell’s strategic focus and delivers strong value to shareholders. He added that Infineon’s deep automotive expertise provides a strong foundation for the continued success and expansion of the Ethernet portfolio.

The acquisition underscores Infineon’s commitment to the automotive sector and its broader strategy to support the digital transformation of the mobility industry.

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