Marvell Technology Group Ltd. and Inphi Corporation today announced a definitive agreement, unanimously approved by the boards of directors of both companies, under which Marvell will acquire Inphi in a cash and stock transaction. In conjunction with the transaction, Marvell intends to reorganize so that the combined company will be domiciled in the United States, creating a U.S. semiconductor powerhouse with an enterprise value of approximately $40 billion.

Inphi is a chip manufacturer founded in November 2000 by Loi Nguyen, Gopal Raghavan, Timothy D. Semones and Ashok Dhawan, formerly known as TComCommunications, Inc., and changed to its current name in February 2001, headquartered in Santa Clara, California, is a company that provides high-speed analog semiconductor solutions for the communications and computing markets.

“Our acquisition of Inphi will fuel Marvell’s leadership in the cloud and extend our 5G position over the next decade,” said Matt Murphy, president and CEO of Marvell. “Inphi’s technologies are at the heart of cloud data center networks and they continue to extend their leadership with innovative new products, including 400G data center interconnect optical modules, which leverage their unique silicon photonics and DSP technologies. We believe that Inphi’s growing presence with cloud customers will also lead to additional opportunities for Marvell’s DPU and ASIC products.”

“Marvell and Inphi share a vision to enable the world’s data infrastructure and we have both transformed our respective businesses to benefit from the strong secular growth expected in the cloud data center and 5G wireless markets” said Ford Tamer, President and CEO of Inphi. “Combining with Marvell significantly increases our scale, accelerates our access to the next generations of process technology, and opens up new opportunities in 5G connectivity.”

According to Bloomberg Supply Chain analysis, Inphi lists Microsoft and Cisco Systems as its largest customers, and Huawei is also a major customer of Inphi. Although the US ban on Huawei has brought some losses to Inphi, analysts estimate that the company's revenue this year is still expected to grow by nearly 90%.

Upon closing, Ford Tamer, Inphi’s President and CEO, will join Marvell’s Board of Directors.