Infineon successfully completes acquisition of Marvell's Automotive Ethernet business

Rhea-AI Summary

Infineon Technologies (OTCQX: IFNNY) has completed its acquisition of Marvell Technology's Automotive Ethernet business for $2.5 billion. The transaction strengthens Infineon's leadership in automotive semiconductors and software-defined vehicles technology.

The acquired business features a design-win pipeline of $4 billion by 2030 and is expected to generate revenue of $225-250 million in 2025 with a 60% gross margin. The Brightlane™ Automotive Ethernet portfolio includes PHY transceivers, switches, and bridges supporting data rates from 100 Mbps to 10 Gbps.

Infineon will integrate the business into a new "Ethernet Solutions" business line within its Automotive division, financing the acquisition through existing funds and debt capital.

Positive

• Significant design-win pipeline of $4 billion by 2030
• Strong gross margin of 60% from the acquired business
• Expected revenue contribution of $225-250 million in 2025
• Strengthens Infineon's #1 position in automotive semiconductors
• Expands technological capabilities in high-growth software-defined vehicles market
• Creates new opportunities in physical AI and humanoid robots markets

Negative

• Substantial acquisition cost of $2.5 billion requiring additional debt financing
• Integration challenges with several hundred new employees
• Increased debt burden on company's balance sheet

Insights

Semiconductor Industry Analyst

Infineon strengthens automotive semiconductor leadership with strategic $2.5B Marvell Ethernet acquisition, expanding into software-defined vehicles and physical AI markets.

Infineon has completed its $2.5 billion acquisition of Marvell's Automotive Ethernet business, significantly strengthening its position in the rapidly evolving automotive semiconductor market. This strategic move brings Marvell's Brightlane™ portfolio of PHY transceivers, switches, and bridges into Infineon's already dominant automotive offerings, with the acquired business expected to generate $225-250 million in revenue for calendar year 2025 at an impressive 60% gross margin.

The acquisition addresses two critical growth vectors: expanding Infineon's capabilities for software-defined vehicles and creating new opportunities in physical AI applications like humanoid robots. The deal's financial dimensions are substantial, adding a design-win pipeline valued at approximately $4 billion by 2030, which represents significant future revenue potential beyond the immediate earnings contribution.

From a technological perspective, this acquisition is particularly strategic as Ethernet has become the critical backbone for modern vehicle architectures, enabling the high-bandwidth, low-latency communication essential for advanced driver assistance systems and autonomous driving capabilities. Marvell's Ethernet solutions support data rates from 100 Mbps to 10 Gbps, providing the necessary security and safety features for increasingly complex in-vehicle networks.

Infineon is financing this acquisition through a combination of existing cash reserves and new debt financing secured from banks. The company has created a dedicated "Ethernet Solutions" business line within its Automotive division to maximize the value of this acquisition, signaling the strategic importance Infineon places on this technology for its future growth trajectory.

• Acquisition boosts Infineon's position in software-defined vehicles and expands global leadership in automotive semiconductors
• Additional growth opportunities anticipated with physical AI applications such as humanoid robots
• Acquisition adds design-win pipeline of around US$4 billion by 2030 with significant potential for future revenue growth

MUNICH, Aug. 14, 2025 /PRNewswire/ -- Infineon Technologies AG (FSE: IFX) (OTCQX: IFNNY) today completed the acquisition of Marvell Technology, Inc.'s (NASDAQ: MRVL) Automotive Ethernet business. The transaction agreement was announced in April 2025 and has received all necessary regulatory approvals. With the acquisition, Infineon strengthens its system expertise for software-defined vehicles and further expands its leading position in the field of microcontrollers for automotive applications.

"This transaction significantly reinforces our number one position in automotive semiconductors and strengthens our strategy of profitable growth," said Jochen Hanebeck, CEO of Infineon. "With an even more comprehensive portfolio, we are driving the transformation to software-defined vehicles together with our customers and partners. In addition, the acquisition creates new opportunities in the field of physical AI, such as humanoid robots. We are excited to welcome several hundred highly skilled and motivated employees to the Infineon team and look forward to elevating the use of Ethernet technology to new scales."

Ethernet is a key enabling technology for low-latency, high-bandwidth communication. It quickly and reliably transfers large amounts of data between components such as microcontrollers, processors and sensors. This makes it crucial for software-defined vehicles and, additionally, it has significant potential in adjacent fields of use such as humanoid robots. The transaction will allow Infineon to provide its customers with even more comprehensive solutions, combining the strengths of Marvell's Automotive Ethernet portfolio with Infineon's existing microcontroller and system expertise.

"We're incredibly proud of what our team has achieved in building a world-class Automotive Ethernet business," said Matt Murphy, Chairman and CEO of Marvell. "Through relentless innovation and deep partnerships across the automotive industry, they've established a leadership position in this critical technology area. Infineon is the right company to take this business to the next level – with the scale, portfolio breadth, and customer reach to unlock its full potential. We're confident this move will create exciting opportunities for continued growth, and we look forward to seeing the team thrive as part of Infineon."

Ethernet connectivity solutions are vital to software-defined vehicles as they are the backbone of communication for E/E-architectures. Marvell's Brightlane™ Automotive Ethernet portfolio, comprising PHY transceivers, switches, and bridges, delivers high-performance networking capabilities, supporting data rates from 100 Mbps to 10 Gbps, and provides the necessary security and safety features for both current and future in-vehicle networks.

The business's design-win pipeline of around $4 billion by 2030 and strong innovation roadmap offers significant potential for future revenue growth. In the calendar year 2025, the business is expected to generate revenue of US$225 – US$250 million with a gross margin of around 60 percent. The purchase price amounted to US$2.5 billion. Infineon finances the acquisition through a combination of existing liquid funds and additional debt capital. The company has secured the acquisition financing from banks. ­

Infineon aims to further expand the newly acquired Ethernet business, by driving innovation and quickly converting it into customer value. The entire Ethernet competence will be bundled in a newly created "Ethernet Solutions" business line within Infineon's Automotive division.

The acquisition will further strengthen Infineon's already strong presence in the US, including extensive activities in research and development.

About Infineon

Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The Company had around 58,060 employees worldwide (end of September 2024) and generated revenue of about €15 billion in the 2024 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market (ticker symbol: IFNNY).

Further information is available at www.infineon.com.
This press release is available online at www.infineon.com/about/press.
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Media Relations:
Andre Tauber
Infineon Technologies AG
+49 89 343 6705
andre.tauber@infineon.com

SOURCE Infineon Technologies AG

FAQ

How much did Infineon pay for Marvell's Automotive Ethernet business?

Infineon paid $2.5 billion for Marvell's Automotive Ethernet business, financing the acquisition through a combination of existing liquid funds and additional debt capital.

What is the expected revenue from IFNNY's newly acquired Ethernet business in 2025?

The acquired business is expected to generate revenue of $225-250 million in calendar year 2025, with a gross margin of approximately 60%.

What is the design-win pipeline value of Infineon's acquired Ethernet business?

The acquired business has a design-win pipeline of approximately $4 billion by 2030, offering significant potential for future revenue growth.

How will Infineon integrate Marvell's Automotive Ethernet business?

Infineon will integrate the acquired Ethernet business into a newly created 'Ethernet Solutions' business line within its Automotive division.

What technologies are included in IFNNY's newly acquired Ethernet portfolio?

The acquired Brightlane™ Automotive Ethernet portfolio includes PHY transceivers, switches, and bridges that support data rates from 100 Mbps to 10 Gbps with security and safety features.

How does this acquisition affect Infineon's market position?

The acquisition strengthens Infineon's number one position in automotive semiconductors and expands its system expertise for software-defined vehicles.