In the automotive semiconductor sector, German chipmaker Infineon Technologies has announced plans to acquire Marvell Technology’s automotive Ethernet business for approximately $2.5 billion in cash. This acquisition aims to enhance Infineon’s microcontroller capabilities and expand its footprint in the rapidly evolving automotive sector.
Company Profiles
Infineon Technologies: Established in 1999 as a spin-off from Siemens AG, Infineon Technologies AG has grown to become Germany’s largest semiconductor manufacturer. With a workforce of approximately 58,000 employees as of 2024, the company operates across various divisions, including Automotive, Green Industrial Power, Power & Sensor Systems, and Connected Secure Systems. Infineon is recognized as one of the top ten semiconductor manufacturers globally.
Marvell Technology: Founded in 1995, Marvell Technology, Inc. is a leader in data infrastructure semiconductor solutions. The company offers a broad portfolio that includes storage, processing, networking, security, and connectivity solutions. Marvell’s automotive Ethernet solutions, particularly its Brightlane™ portfolio, have been instrumental in advancing in-vehicle networking, enabling features essential for modern software-defined vehicles.
Details of the Acquisition
Announced on April 7, 2025, the acquisition will see Infineon integrating Marvell’s automotive Ethernet business into its automotive division. The acquired unit is projected to generate revenues between $225 million and $250 million in the calendar year 2025, with a robust gross margin of nearly 60%. To finance this transaction, Infineon has secured acquisition financing from banks and plans to incur additional debt. The deal is anticipated to close within the year, pending regulatory approvals and customary closing conditions.
Strategic Implications
This acquisition aligns with Infineon’s strategy to strengthen its capabilities in the automotive semiconductor market, particularly in the realm of advanced driver-assistance systems (ADAS) and autonomous driving technologies. By incorporating Marvell’s high-bandwidth, low-latency automotive Ethernet solutions, Infineon aims to meet the increasing demand for sophisticated in-vehicle networking required for next-generation vehicles
Marvell’s automotive Ethernet technology has been recognized for its innovation and performance. Notably, in April 2024, General Motors honored Marvell with the Overdrive Award for its contributions to automotive Ethernet technology, underscoring the industry’s acknowledgment of Marvell’s excellence in this domain.
Infineon’s acquisition of Marvell’s automotive Ethernet business represents a significant step in enhancing its automotive semiconductor portfolio, positioning the company to better serve the evolving needs of the automotive industry.