Automotive field is one of the major growth drivers for the electronics and related industries. In fact, several chip and component makers are beefing up their capabilities to meet the growing demand in the said field.

Infineon Technologies AG has been accelerating the build-up of its system capabilities for software-defined vehicles. Thus, it has moved to acquire Marvell Technology’s Automotive Ethernet business, complementing and expanding its own market-leading microcontroller business.

Accordingly, Infineon and Marvell Technology, Inc. have entered into a definitive transaction agreement for a purchase price of US$2.5 billion in cash.

Critical Component in In-Car Communications

Ethernet is a key enabling technology for low-latency, high-bandwidth communication. Therefore, this has been crucial for software-defined vehicles.

Ethernet connectivityht 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.

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.

“The acquisition is a great strategic fit for Infineon as the global number one provider of semiconductor solutions to the automotive industry,” says Jochen Hanebeck, CEO of Infineon.

In addition, Haneback said, “We will leverage this highly complementary Ethernet technology by combining it with our existing, broad product portfolio to provide our customers with even more comprehensive, leading solutions for software-defined vehicles. The transaction will support our profitable growth strategy going forward, including new opportunities in the field of physical AI such as humanoid robots.” 

Marvell’s leading Brightlane™ Automotive Ethernet portfolio of PHY transceivers, switches and bridges supports network data rates ranging from today’s 100Mbps up to market-leading 10Gbps. It also supports the security and safety features required for today’s and tomorrow’s in-vehicle networks. 

Robust Business Potential

Among the customers of Marvell’s Automotive Ethernet business are more than 50 automotive manufacturers, including eight of the ten leading OEMs. The strong customer relationships are backed by a design-win pipeline of around US$4 billion until 2030 and a strong innovation roadmap, paving the way for future revenue growth.

The business is likely to generate revenue of US$225 to US$250 million in the 2025 calendar year with a gross margin of around 60 percent, 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. Marvell’s Automotive Ethernet business has several hundred highly skilled and dedicated employees, with main offices in the United States, Germany, and Asia. After the transaction closes, Marvell’s Automotive Ethernet business will become part of Infineon’s Automotive division.

The combination with the Infineon AURIX™ microcontroller family creates a comprehensive product offering combining communications solutions as well as real-time control. The acquisition is intended to further strengthen Infineon’s number one position in microcontrollers.

09 April 2025