Global semiconductor company Infineon Technologies (Korea CEO Seungsoo Lee) is accelerating its growth in the software-defined vehicle (SDV) and AI sectors through the acquisition of Marvell Technology, Inc.'s automotive Ethernet business unit.

Infineon announced on August 14 that it has successfully completed the acquisition of Marvell Technologies' Automotive Ethernet business unit.

This acquisition is expected to further strengthen Infineon's global leadership in software-defined vehicles (SDVs) and automotive semiconductors.

With this acquisition, Infineon expands its expertise in automotive microcontrollers and systems and adds Ethernet connectivity solutions, a key technology for the SDV transition, to its portfolio.

Ethernet enables low-latency, high-bandwidth communication, and is an essential technology for quickly and reliably processing large amounts of data between microcontrollers, sensors, and processors in vehicles.

Marvell's Brightlane™ Automotive Ethernet portfolio consists of PHY transceivers, switches, and bridges, supporting network speeds from 100 Mbps to 10 Gbps. It also includes features that ensure the security and safety of in-vehicle communications, meeting the needs of current and future E/E architectures.

Through this acquisition, Infineon secures a design win pipeline worth approximately $4 billion, which is expected to generate revenue of $225 million to $250 million by 2025, at a gross margin of approximately 60%.

The acquisition price was $2.5 billion, and Infineon has established a foundation for long-term growth through this acquisition.

“With this acquisition, we will strengthen our leading position in automotive semiconductors and drive the SDV transition together with our customers and partners,” said Jochen Hanebeck, CEO of Infineon. “We can also create new growth opportunities in physical AI applications such as humanoid robots.”

Ethernet technology is expected to play a key role not only in vehicles but also in physical AI applications such as humanoid robots.

Ethernet serves as essential infrastructure for AI systems that require high-speed, high-reliability data transmission, and Infineon is exploring expansion into new markets through this technology.

Infineon plans to integrate Marvell's recently acquired Ethernet capabilities into the newly established "Ethernet Solutions" division within its Automotive Business Unit. This will accelerate technological innovation and enable a rapid transition to customer value.