August 22, 2025 /SemiMedia/ — Infineon Technologies has completed the $2.5 billion cash acquisition of Marvell Technology’s Automotive Ethernet business, following regulatory approval. The move strengthens Infineon’s position in software-defined vehicles (SDVs) and enhances its automotive microcontroller capabilities.

The acquisition integrates Marvell’s Ethernet solutions, including PHY transceivers, bridges, and switches, into Infineon’s portfolio. These products provide networking speeds from 100Mbps to 10Gbps and include essential safety and security features, forming the backbone of SDV communication systems.

The acquired business has a design-win pipeline projected at $4 billion by 2030 and is expected to generate $225 million to $250 million in revenue this year with a gross margin near 60%. Infineon financed the acquisition using a combination of available funds and new debt, supported by banking institutions.

Infineon has established a dedicated “Ethernet Solutions” line within its automotive division to centralize expertise and accelerate innovation. The acquisition is also expected to expand the company’s footprint in the U.S., particularly in research and development.

Matt Murphy, CEO and chairman of Marvell Technology, said, “Infineon is the right company to take this business to the next level with its scale, product portfolio, and customer reach. We’re confident this move will create exciting growth opportunities.”