Marvell Technology agreed to sell its Automotive Ethernet business to Infineon Technologies AG in an all-cash deal valued at $2.5 billion. The business, anchored by Marvell’s Brightlane portfolio, is projected to generate $225–250 million in revenue during fiscal 2026. The transaction has received approval from Marvell’s board and is expected to close by the end of calendar year 2025, pending regulatory clearance and other standard conditions.
This divestiture aligns with Marvell’s sharpened focus on core data infrastructure markets, particularly the data center sector, which accounted for 75% of its total revenue in the fourth quarter of fiscal 2025. While Marvell has grown its Automotive Ethernet portfolio organically in recent years, the company determined that divestment would deliver better shareholder value, given the strategic fit of Infineon’s broader automotive platform.
Infineon, a major player in automotive semiconductors, gains a key asset to strengthen its Ethernet connectivity offerings for next-generation vehicle architectures. For Marvell, the sale streamlines operations and reinforces its position in high-growth segments like AI and cloud data centers. Marvell plans to detail the transaction during its Q1 fiscal 2026 earnings call on May 29.
Marvell’s Brightlane™ Automotive Ethernet business includes a comprehensive portfolio of PHY transceivers, switches, and bridges that support network speeds from 100 Mbps to 10 Gbps. The portfolio is engineered to meet the security and safety standards required for current and future in-vehicle network architectures. These Ethernet solutions play a critical role in enabling software-defined vehicles, supporting high-throughput data exchange for centralized computing zones, advanced driver-assistance systems (ADAS), autonomous driving, and real-time over-the-air updates.
The business serves more than 50 automotive manufacturers, including eight of the top ten global OEMs. It brings with it a design-win pipeline of approximately $4 billion through 2030 and is on track to generate between $225 million and $250 million in revenue during calendar year 2025. With a gross margin around 60%, the unit is positioned for accelerated growth under Infineon, which brings broader customer access and greater production scale. Additional synergies are expected from joint R&D efforts and Infineon’s global manufacturing capabilities.
Following the transaction’s close, the Automotive Ethernet business will be integrated into Infineon’s Automotive division. It will complement Infineon’s AURIX™ microcontroller platform by combining high-speed communications with real-time processing. The combined portfolio will offer a unified solution for the data-centric, zonal architectures driving next-generation vehicles. The business includes several hundred specialized employees across offices in the U.S., Germany, and Asia.
• Transaction details:
• Infineon acquires Marvell’s Automotive Ethernet unit for $2.5 billion in cash.
• Includes the Brightlane® product portfolio and related assets.
• Deal expected to close by end of 2025, pending approvals.
• Financials and focus:
• Unit expected to generate $225–250 million in FY26 revenue.
• Marvell intensifies focus on data center and AI infrastructure markets.
• Automotive Ethernet represented a non-core growth segment for Marvell.
• Strategic rationale:
• Infineon gains Ethernet assets to support automotive connectivity expansion.
• Marvell reallocates capital toward higher-margin infrastructure business.
“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. “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.”
“We believe this transaction delivers the strongest financial return for Marvell shareholders, given its compelling valuation,” said Matt Murphy, Chairman and CEO of Marvell.
- In 2019, Marvell Technology Group acquired Aquantia for $13.25 per share in cash, representing approximately $452 million in transaction value after adjusting for net cash on Aquantia’s balance sheet. Aquantia, which was based in San Jose, California, specialized in Multi-Gig 2.5G/5G/10G Ethernet over copper products. Its portfolio automotive PHYs for in-vehicle Ethernet networks supporting level 4 and 5 autonomous driving.
- Aquantia Corporation was founded in 2004 by Faraj Aalaei, Ramin Farjad-Rad, and Phil Delansay, with a focus on developing high-speed Ethernet connectivity solutions. Based in San Jose, California, the company initially targeted data center connectivity before expanding into enterprise and automotive markets, pioneering Multi-Gig technology that enabled speeds of 2.5Gbps, 5Gbps, and 10Gbps over copper cables—key innovations like the AQrate product line and 10GBASE-T PHYs set it apart in the industry. Aquantia went public on November 3, 2017, with an initial public offering (IPO) on the New York Stock Exchange under the ticker “AQ.”
