Infineon Strengthens Leadership in Automotive Microcontrollers with Strategic Acquisition of Marvell’s Automotive Ethernet Business
Infineon Technologies , a global leader in semiconductor solutions for the automotive industry, has announced a significant strategic move to enhance its capabilities in the rapidly evolving landscape of software-defined vehicles (SDVs). The company has entered into a definitive agreement to acquire Marvell Technology’s (NASDAQ: MRVL) Automotive Ethernet business in an all-cash transaction valued at $2.5 billion. This acquisition underscores Infineon’s long-term commitment to expanding its technology portfolio to address the growing complexity and digitalization of modern vehicles.
The transaction, which is subject to customary regulatory approvals, will deepen Infineon’s system competencies and solidify its position as the global number one supplier of automotive microcontrollers. By integrating Marvell’s cutting-edge Ethernet technology into its existing automotive semiconductor offerings, Infineon aims to deliver more comprehensive solutions for SDVs, positioning itself at the forefront of next-generation mobility.
Ethernet: A Critical Enabler for Software-Defined Vehicles
Ethernet technology plays a foundational role in the architecture of SDVs. It enables high-bandwidth, low-latency communication across various systems within a vehicle—making it essential for features such as over-the-air (OTA) updates, autonomous driving, real-time data processing, and advanced driver-assistance systems (ADAS). These requirements are becoming standard in modern vehicle design, and the integration of Ethernet is crucial for supporting the enormous data flows they generate.
In addition to its automotive applications, Ethernet also has increasing potential in adjacent industries, particularly in robotics. As artificial intelligence (AI) drives demand for more intelligent and responsive machines, including humanoid robots, Ethernet’s capacity for secure and rapid data transfer is becoming indispensable.
A Complementary Strategic Fit
“The acquisition is a great strategic fit for Infineon as the global number one provider of semiconductor solutions to the automotive industry,” said Jochen Hanebeck, CEO of Infineon Technologies. “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.”
This transaction represents a clear step in Infineon’s long-term growth strategy, which is centered around building scalable and future-ready technologies for the automotive industry and beyond. Infineon plans to integrate Marvell’s automotive Ethernet assets into its existing product offerings to create end-to-end solutions that address the increasing digitalization of vehicles.
Brightlane™ Portfolio: An Industry-Leading Ethernet Solution
At the heart of this acquisition is Marvell’s Brightlane™ Automotive Ethernet portfolio, which includes PHY transceivers, switches, and bridges designed specifically for in-vehicle networking. These products support a range of network data rates—from current-generation 100 Mbps to an industry-leading 10 Gbps—enabling scalable architectures that meet both current and future demands of automotive data communication.
Brightlane solutions also offer robust safety and security features, essential for meeting the stringent requirements of today’s complex and connected automotive environments. These capabilities ensure the integrity and reliability of in-vehicle networks, particularly in applications such as ADAS, autonomous driving, and data-heavy infotainment systems.
Established Customer Base and Revenue Potential
Marvell’s Automotive Ethernet business has already established strong relationships across the automotive sector. The customer base includes more than 50 automotive manufacturers, among them eight of the top ten global original equipment manufacturers (OEMs). This extensive customer reach is reinforced by a robust design-win pipeline, estimated at approximately $4 billion through 2030. These existing and future engagements provide a clear path for sustained revenue growth in the years ahead.
Infineon expects the acquired business to generate between $225 million and $250 million in revenue in the 2025 calendar year, with gross margins around 60%. These strong financial indicators reflect the growing demand for high-performance in-vehicle networking solutions and demonstrate the business’s alignment with Infineon’s broader automotive strategy.
Leveraging Infineon’s Global Footprint and Capabilities
Following the transaction’s completion, Marvell’s Automotive Ethernet unit—including several hundred skilled employees based in the U.S., Germany, and Asia—will be integrated into Infineon’s Automotive division. This global team will complement Infineon’s R&D capabilities and support the company’s efforts to accelerate product innovation and time to market.
The acquisition will also further strengthen Infineon’s presence in the United States, a key market for both automotive and industrial semiconductor applications. Infineon plans to utilize its extensive production and supply chain infrastructure to scale the Ethernet business, creating potential cost synergies and operational efficiencies.
From a technical perspective, the integration of Marvell’s Ethernet technology with Infineon’s AURIX™ microcontroller family will enable the creation of robust and holistic platforms that combine real-time processing, high-speed communication, and advanced safety and security features. This unique combination positions Infineon to meet the increasingly complex demands of modern automotive E/E (electrical/electronic) architectures, which are evolving toward zonal and centralized computing.
Strategic Financial Approach
Infineon will fund the $2.5 billion acquisition using a combination of existing liquidity and new debt. The company has already secured acquisition financing through banking partners, ensuring the transaction is fully funded without impacting its core operations or long-term investment plans. The deal is expected to close by the end of the 2025 calendar year, pending regulatory and customary closing conditions.
The investment aligns with Infineon’s long-term capital allocation framework, which focuses on maintaining financial discipline while pursuing strategic growth opportunities that offer strong returns. By absorbing a high-margin, high-growth business, Infineon reinforces its commitment to sustainable value creation for shareholders, customers, and employees alike.
Investor Relations and Next Steps
To provide additional insight into the strategic rationale and financial implications of the acquisition, Infineon will host a webcasted investor and analyst conference call on Tuesday, April 8 at 8:30 a.m. CEST. During the call, Infineon’s executive leadership will present the transaction details and outline how the integration of Marvell’s Automotive Ethernet business fits into the company’s broader vision for the future of mobility and intelligent systems.
A Clear Path to the Future of Mobility
As vehicles become increasingly software-defined and interconnected, the demand for secure, fast, and reliable data communication will continue to rise. Infineon’s acquisition of Marvell’s Automotive Ethernet business is a decisive step in addressing these challenges and opportunities. With a powerful combination of microcontroller expertise and advanced Ethernet connectivity, Infineon is positioning itself as the go-to partner for OEMs and Tier 1 suppliers building the vehicles of tomorrow.
From enabling seamless OTA updates to supporting the infrastructure for autonomous driving, Infineon’s expanded portfolio will deliver the tools required to turn automotive innovation into reality. Furthermore, the acquisition opens doors to adjacent markets such as industrial robotics, where similar communication and control requirements are emerging.
With this strategic acquisition, Infineon not only reinforces its leadership in automotive semiconductors but also lays the groundwork for growth in a future defined by software, data, and intelligent connectivity.
