Marvell Technology has announced the sale of its Automotive Ethernet business to Infineon Technologies for $2.5 billion in cash. The deal closed eleven days into Marvell’s third quarter of fiscal 2026, during which the Automotive Ethernet business generated mid-single-digit millions in revenue. Effective August 15, 2025, Marvell will no longer report any contributions from this business.
The Automotive Ethernet business was expected to contribute between $225 million and $250 million in revenue during fiscal 2026. Marvell does not foresee a material impact on its non-GAAP earnings per share from this transaction.
Ethernet technology is crucial for low-latency, high-bandwidth communication, which is vital for software-defined vehicles and has potential applications in areas like humanoid robots. The acquisition allows Infineon to enhance its offerings by combining Marvell’s Automotive Ethernet portfolio with its expertise.
The Automotive Ethernet business is projected to have a design-win pipeline of approximately $4 billion by 2030 and is expected to generate $225 million to $250 million in revenue, with a 60% gross margin, by 2025. Infineon plans to finance the acquisition through existing funds and additional debt.
All Ethernet operations will be merged into a new “Ethernet Solutions” business line within Infineon’s Automotive division, further strengthening Infineon’s presence in the U.S. and its research and development capabilities.
KEY QUOTES:
“This transaction significantly reinforces our number one position in automotive semiconductors and strengthens our strategy of profitable growth. With an even more comprehensive portfolio, we are driving the transformation to software-defined vehicles together with our customers and partners. In addition, the acquisition creates new opportunities in the field of physical AI, such as humanoid robots. We are excited to welcome several hundred highly skilled and motivated employees to the Infineon team and look forward to elevating the use of Ethernet technology to new scales.”
Jochen Hanebeck, CEO of Infineon
“We’re incredibly proud of what our team has achieved in building a world-class Automotive Ethernet business. Through relentless innovation and deep partnerships across the automotive industry, they’ve established a leadership position in this critical technology area. Infineon is the right company to take this business to the next level – with the scale, portfolio breadth, and customer reach to unlock its full potential. We’re confident this move will create exciting opportunities for continued growth, and we look forward to seeing the team thrive as part of Infineon.”
Matt Murphy, Chairman and CEO of Marvell
