Infineon completes acquisition of Marvell's Automotive Ethernet business

With the acquisition, Infineon strengthens its system expertise for software-defined vehicles and further expands its 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,” says Jochen Hanebeck, CEO of Infineon, in a press release. “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.”

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. The transaction will allow Infineon to provide its customers with more comprehensive solutions, combining the strengths of Marvell's Automotive Ethernet portfolio with Infineon's existing microcontroller and system expertise.

The design-win pipeline of around USD 4 billion by 2030 and a strong innovation roadmap offer significant potential for future revenue growth. In the calendar year 2025, the business is expected to generate revenue of USD 225 – USD 250 million with a gross margin of around 60%. The purchase price amounted to USD 2.5 billion. 

Infineon says that it intends 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.