Munich, Germany – April 8, 2025 — In a significant move that underscores the accelerating convergence of automotive and data-centric technologies, Infineon Technologies AG has announced a definitive agreement to acquire Marvell Technology’s Automotive Ethernet business for $2.5 billion in cash. The acquisition is expected to close by the end of calendar year 2024, subject to customary closing conditions and regulatory approvals.
With this acquisition, Infineon is expanding its leadership in automotive semiconductors and reinforcing its roadmap for the software-defined vehicle (SDV) era.
Strategic Rationale: Enabling the Software-Defined Vehicle Revolution
As vehicles become increasingly defined by software rather than hardware, the internal architecture of automobiles is undergoing a seismic shift. Legacy domain-based electrical/electronic (E/E) architectures are being replaced by zonal architectures that centralize computing while distributing data collection and communication. This transformation demands high-speed, scalable, and secure in-vehicle networking solutions.
By acquiring Marvell’s Brightlane™ Automotive Ethernet Portfolio, Infineon gains access to a technology suite that is already in production with more than 50 automotive OEMs, including eight of the top ten global manufacturers. These Ethernet PHYs, switches, and bridges support data transmission rates from 100 Mbps up to 10 Gbps, enabling seamless communication between advanced driver-assistance systems (ADAS), infotainment, battery management systems (BMS), and more.
What Marvell Brings to the Table: A Best-in-Class Automotive Ethernet Portfolio
Marvell’s automotive Ethernet unit includes:
• Advanced Ethernet PHYs: Automotive-grade physical layer devices supporting robust and deterministic communication.
• Automotive Ethernet Switches: Scalable solutions optimized for low-latency communication and in-vehicle safety protocols.
• Bridges and Controllers: Allowing seamless interconnectivity across automotive subsystems.
These products are based on standards-compliant Time Sensitive Networking (TSN) protocols, essential for ensuring real-time data communication for autonomous and connected vehicles.
In addition to the product portfolio, Infineon is also acquiring a highly skilled engineering team with deep expertise in automotive Ethernet silicon design, system-level implementation, and software development.
Financial Highlights and Revenue Impact
Infineon has indicated that the acquisition is expected to contribute between $225 million and $250 million in revenue in fiscal year 2025, with a gross margin of approximately 60%, consistent with Infineon's overall margin profile. The company plans to fund the acquisition using existing cash reserves, avoiding equity dilution and reflecting Infineon's strong balance sheet.
Key financial implications include:
• Accretive to earnings beginning in 2025
• Strengthens Infineon’s footprint in high-growth, high-margin segments
• Enhances long-term profitability and competitiveness in the automotive connectivity market
Organizational Integration: Establishing the Network Solutions Business Line
The acquired Marvell team and assets will be integrated into Infineon’s Automotive Division, forming a new business line titled “Network Solutions” under the Connectivity Business Unit.
This new business line will work alongside Infineon’s existing portfolios in microcontrollers (AURIX™ family), power semiconductors, radar, and cybersecurity to deliver complete end-to-end platforms for zonal and centralized E/E architectures.
Market Impact: Strengthening Infineon’s Leadership in Automotive Semiconductors
With this acquisition, Infineon reaffirms its #1 position in automotive semiconductors by volume and strengthens its offering in one of the fastest-growing subsegments — automotive networking. The total addressable market (TAM) for automotive Ethernet solutions is expected to reach over $5 billion by 2030, driven by exponential growth in data-intensive applications such as:
• Level 2+ and Level 3 autonomous driving
• Vehicle-to-Everything (V2X) communications
• Over-the-air (OTA) software updates
• Edge and in-vehicle AI compute nodes
Executive Insight
“The team and the technology we are acquiring from Marvell are an excellent strategic fit with our ambitions. As the industry moves toward the software-defined vehicle, a robust and secure in-vehicle communication backbone is critical. This acquisition brings us significantly closer to becoming a system solution provider for future E/E architectures”.
– Jochen Hanebeck, CEO, Infineon Technologies AG
Conclusion: A Strategic Bet on the Future of Mobility
This acquisition is more than a portfolio expansion — it's a deliberate move by Infineon to define the future of mobility. As cars evolve into computers on wheels, in-vehicle data flow becomes as vital as power distribution. With the Marvell Brightlane™ Ethernet platform under its umbrella, Infineon is uniquely positioned to offer fully integrated solutions for the next generation of automobiles.
Stay tuned for further developments as Infineon integrates Marvell’s assets and rolls out comprehensive solutions designed for flexibility, scalability, and real-time performance — the building blocks of tomorrow’s software-defined vehicles.
Written by Jack Zhang from AIChipLink.
AIChipLink, one of the fastest-growing global independent electronic component distributors in the world, offers millions of products from thousands of manufacturers, and many of our in-stock parts is available to ship same day.
We mainly source and distribute integrated circuit (IC) products of brands such as Broadcom, Microchip, Texas Instruments, Infineon, NXP, Analog Devices, Qualcomm, Intel, etc., which are widely used in communication & network, telecom, industrial control, new energy and automotive electronics.
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