Marvell announced on May 20 that it has reached an agreement with GlobalFoundries to acquire its Avave Semiconductor. The company is a wholly-owned subsidiary of GlobalFoundries announced in November 2018 to provide custom silicon solutions for a variety of applications.

The acquisition will include Avera's primary revenue business, key product designs, leading architecture OEMs and new long-term wafer supply contracts between GLobalFoundries and Marvell. Under the agreement, Marvell will pay $650 million first and will pay an additional $90 million in the next 15 months, which is expected to be completed by the end of fiscal year 2020.

It is understood that the acquisition will integrate Avera's leading custom design capabilities with Marvell's advanced technology platform to create a leading ASIC manufacturer covering wired and wireless communications. With the addition of Avera, Marvell hopes to solve the ASIC chips customized for base stations, making them more competitive in the future 5G market and playing a positive role in Marvell's revenue and profit.