April 9, 2025 /SemiMedia/ — Infineon Technologies AG said on Monday it will acquire the automotive Ethernet business of Marvell Technology Inc. for $2.5 billion in cash, aiming to strengthen its position in the automotive semiconductor sector. The deal is expected to close in 2025.

The acquired business is projected to generate $225 million to $250 million in revenue this year with a gross margin of around 60%. It supplies over 50 carmakers and will be integrated into Infineon’s Automotive division.

Automotive Ethernet plays a critical role in enabling advanced driver-assistance systems (ADAS) and the transition toward software-defined vehicles. Infineon plans to achieve synergies through R&D integration and leverage its in-house manufacturing capabilities to improve cost efficiency.

Marvell has been shifting its focus toward data center semiconductors, which grew 78% year-on-year in the fourth quarter. In contrast, its automotive and industrial segment posted a modest 4.1% gain. The divestiture marks a strategic step for Marvell to streamline its portfolio and concentrate on high-growth areas.

Infineon will finance the transaction through existing liquidity and additional debt. Marvell said it will discuss the deal further during its Q1 earnings call on May 29.