Infineon Bolsters Leadership in Automotive Microcontrollers with Strategic $2.5 Billion Acquisition of Marvell’s Automotive Ethernet Business
Infineon Technologies AG, a global leader in semiconductor solutions for the automotive industry, has announced a significant step in expanding its system capabilities for the next generation of software-defined vehicles. The company has entered into a definitive agreement to acquire Marvell Technology, Inc.’s (NASDAQ: MRVL) Automotive Ethernet business for a total purchase price of $2.5 billion in cash. This bold move underscores Infineon’s ambition to solidify its dominance in automotive microcontrollers while scaling up its capabilities in high-performance, secure, and efficient in-vehicle networking—an essential requirement for software-defined vehicles (SDVs).
The transaction, which is still subject to regulatory approvals and customary closing conditions, is expected to close by the end of calendar year 2025. Infineon plans to fund the acquisition using a mix of existing liquidity and newly secured acquisition financing from banks.
Accelerating the Future of Software-Defined Mobility
As the automotive industry continues its rapid transformation toward software-centric architectures, the demand for high-bandwidth, low-latency data networks within vehicles has surged. Technologies that enable real-time communication between vehicle components, including those required for autonomous driving, over-the-air software updates, and advanced driver-assistance systems (ADAS), are now considered critical.
Ethernet technology has emerged as a cornerstone of this transformation. With its scalable bandwidth, deterministic performance, and inherent support for safety and security protocols, Automotive Ethernet is uniquely suited for SDVs. It allows for seamless communication between central compute units, zonal controllers, and endpoint devices, forming the digital backbone of next-generation electronic/electrical (E/E) vehicle architectures.
Infineon’s acquisition of Marvell’s Automotive Ethernet business is strategically aligned with these trends. By integrating Marvell’s cutting-edge Ethernet technology into its own portfolio, Infineon aims to deliver end-to-end system solutions that combine networking, computing, and real-time control—thereby addressing the full spectrum of SDV requirements.
A Strategic Fit for Growth and Innovation
Commenting on the acquisition, Jochen Hanebeck, CEO of Infineon, emphasized the strategic alignment of the transaction with the company’s long-term vision:
The acquisition is a great strategic fit for Infineon as the global number one provider of semiconductor solutions to the automotive industry,” said Hanebeck. “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.”
In fact, the potential applications of high-bandwidth Ethernet extend beyond the automotive domain. Infineon believes that technologies developed for SDVs will also prove valuable in adjacent sectors such as robotics, industrial automation, and artificial intelligence—especially as physical AI continues to evolve with the development of humanoid robots and other intelligent machines requiring advanced connectivity.
Powering the Next Generation of Automotive Networking
Marvell’s Automotive Ethernet business brings with it the Brightlane™ portfolio—a suite of high-performance networking products, including PHY transceivers, switches, and bridges. These components are already used by more than 50 automotive manufacturers worldwide, including eight of the top ten original equipment manufacturers (OEMs).
The Brightlane™ lineup supports network data rates ranging from 100 megabits per second (Mbps) to a market-leading 10 gigabits per second (Gbps), offering the bandwidth necessary for the increasingly data-intensive demands of SDVs. It also incorporates state-of-the-art safety and security features, meeting the stringent standards required for modern automotive systems.
Infineon’s access to global automotive customers, coupled with its strength in microcontroller technology—especially its AURIX™ microcontroller family—creates powerful synergies with Marvell’s Ethernet solutions. The integration will result in a unique, system-level offering that combines communications, processing, and control into a single, tightly coordinated platform.
Financial Strength and Future Growth
From a financial perspective, the acquisition is expected to be accretive to Infineon’s long-term revenue and profitability. Marvell’s Automotive Ethernet business currently boasts a strong design-win pipeline of approximately $4 billion through 2030, indicating robust demand for its solutions in upcoming vehicle platforms.
For the 2025 calendar year, the business is projected to generate revenues between $225 million and $250 million, with a gross margin of roughly 60%. These healthy financial metrics are expected to improve further through operational synergies, including cost savings in R&D and enhanced manufacturing efficiencies via Infineon’s global production network.
Infineon plans to integrate Marvell’s automotive networking team, which comprises several hundred highly skilled employees located across the U.S., Germany, and Asia, into its Automotive division. This infusion of talent will further bolster the company’s innovation pipeline and reinforce its presence in key international markets, especially the United States.
Strengthening Infineon’s U.S. Footprint
Beyond the immediate technological and financial benefits, the acquisition also enhances Infineon’s strategic footprint in the U.S.—a critical market for automotive and semiconductor innovation. With major R&D and engineering facilities already in place, Infineon intends to build on Marvell’s existing infrastructure and expertise to accelerate the development of advanced Ethernet and system-level solutions.
This move aligns with Infineon’s broader strategy of increasing its investment in high-growth, high-margin technology areas and fortifying its global supply chain to support future scalability and resilience.
Enabling Seamless Integration for Automotive Customers
By uniting Ethernet-based connectivity with its existing portfolio of microcontrollers, power semiconductors, and security solutions, Infineon is positioning itself as a comprehensive solutions provider for the automotive industry.
Infineon’s expanded offering will cater to a broad spectrum of customer needs—from core microcontrollers and secure connectivity to AI-enabled decision-making and vehicle control. This holistic approach is expected to resonate with automakers and Tier 1 suppliers seeking fully integrated platforms to power their future vehicle architectures.
Moreover, with the SDV paradigm quickly becoming the norm rather than the exception, Infineon’s enhanced capabilities will allow it to support customers through every phase of vehicle development—from concept and prototyping to mass production and software lifecycle management.
The acquisition of Marvell’s Automotive Ethernet business marks a pivotal moment in Infineon’s growth trajectory. It underscores the company’s commitment to shaping the future of mobility and supporting the automotive industry’s shift toward electrification, autonomy, and software-defined functionality.
Infineon will provide further insights into the transaction during a scheduled analyst and investor call on Tuesday, April 8 at 8:30 a.m. Central European Summer Time (CEST). The call will include a live webcast and a question-and-answer session with senior management, who will elaborate on the strategic rationale, integration plans, and financial outlook related to the acquisition. A recording of the session will be available for download on Infineon’s investor relations website: www.infineon.com/investor.
As regulatory approvals progress and integration plans take shape, Infineon stands poised to deliver not only on the promise of software-defined vehicles—but also on the broader vision of intelligent, connected, and autonomous technologies that will define the future of mobility and machine intelligence.
