Infineon buys automotive Ethernet business from Marvell
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Infineon Technologies AG has entered into a definitive transaction agreement to acquire Marvell Technology’s Automotive Ethernet business for US$2.5 billion in cash to accelerate its system capabilities for software-defined vehicles. After the transaction closes, Marvell’s Automotive Ethernet business will become part of Infineon’s Automotive division.
The transaction will strengthen Infineon’s already strong footprint in the U.S., including extensive R&D activities while complementing and expanding its market-leading microcontroller business. Ethernet is a key technology that enables low-latency, high-bandwidth communication, which is crucial for automotive applications, particularly software-defined vehicles. Additionally, Ethernet has significant potential in adjacent use cases, such as humanoid robots.
Marvell’s leading Brightlane™ Automotive Ethernet portfolio of PHY transceivers, switches, and bridges supports network data rates ranging from 100 Mbps to a market-leading 10 Gbps. It also supports the security and safety features required for current and future in-vehicle networks.
Ethernet connectivity is essential for software-defined vehicles and forms the foundation for highly efficient E/E architectures, which include 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. Combining the Infineon AURIX™ microcontroller family with Ethernet results in a comprehensive product offering that integrates both communications and real-time control.
Marvell’s Automotive Ethernet business serves over 50 automotive manufacturers, including eight of the top ten OEMs. It boasts a US$4 billion design-win pipeline through 2030 and a solid innovation roadmap for future growth. The business aims for US$225 to US$250 million in revenue in 2025, with a 60% gross margin, buoyed by Infineon’s extensive global automotive customer access. Cost reductions are anticipated from R&D collaboration and Infineon’s production reach. The Marvell Automotive Ethernet business comprises several hundred skilled employees based in the U.S., Germany, and Asia.
The transaction subject to customary closing conditions, including regulatory approvals, is expected to close within calendar year 2025.
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