Why Marvell (MRVL) Is Buying Tanzanite

By Amit Chowdhry ● May 9, 2022
  • Marvell (NASDAQ: MRVL) announced a definitive agreement to buy privately-held Tanzanite Silicon Solutions. These are the details.

Marvell (NASDAQ: MRVL) announced a definitive agreement to buy privately-held Tanzanite Silicon Solutions, a leading developer of advanced Compute Express Link (CXL) technologies, in an all-cash transaction. And Marvell’s ongoing data center-focused investments, including in its CXL solutions, have expanded the company’s addressable market to advance the industry’s most comprehensive portfolio of cloud-optimized silicon solutions. And with this announced acquisition, Marvell strengthens its CXL development initiatives.

The existing server architectures face multiple memory scaling challenges and lack the ability to share memory resources efficiently. And simultaneously, workloads such as artificial intelligence (AI), machine learning (ML), analytics, and large-scale search, along with an emergence of the metaverse, are demanding increased memory performance and composability in the cloud. The silicon components based on CXL, an industry standard for connecting processors, accelerators, and memory, will facilitate new cloud data center architectures with strong performance and efficiency benefits.

Tanzanite has developed extensive expertise in CXL technology that will help further accelerate Marvell’s vision of a fully composable cloud infrastructure. And CXL is integral to the company’s data center portfolio of compute, electro-optics, networking, security, and storage. The benefits of CXL include infrastructure agility to instantly allocate resources tailored to workload requirements, resulting in improved utilization and reduced total cost of ownership (TCO).

The future cloud data center will be built on fully disaggregated architecture utilizing CXL technology, requiring greater high-speed interconnectivity than ever combined with optimized compute, networking, memory, security, and storage chipset solutions. And with the broadest 5nm technology platform and the industry’s most complete end-to-end data infrastructure building blocks, Marvell is positioned as the cloud semiconductor solutions partner of choice.

Marvell’s comprehensive portfolio of cloud offerings includes high-speed Alaska active electrical cable (AEC) PAM4 DSPs and Ethernet PHYs; Bravera SSD and HDD controllers; Inphi PAM4 electro-optics; COLORZ data center interconnects (DCIs); OCTEON data processor units (DPUs) for security, offload, and acceleration; Teralynx Ethernet switches; custom Arm-based server CPUs; and full custom ASICs.

Marvell is going to present the fundamentals of CXL technology and its role in helping bring fully composable cloud data center infrastructure to fruition in an upcoming Tech Talk webinar which will be announced later this month.

The deal is expected to close in the second quarter of the current fiscal year and is subject to the satisfaction of customary closing conditions, including approval by Tanzanite’s shareholders.

KEY QUOTES:

“We believe that CXL will be a significant game-changer in enabling optimal resource utilization in next-generation data centers, and the acquisition of Tanzanite advances our abilities to address our customers’ most challenging issues. Marvell’s investment underscores our commitment to deliver on the promise of CXL across our industry-leading cloud portfolio spanning compute, electro-optics, networking, security, and storage.”

– Dan Christman, executive vice president, Storage Products Group, Marvell

“We are excited to see our vision for CXL leadership take a leap forward as part of Marvell, a company that is renowned for its customer-focused innovation. CXL technologies offer a unique value proposition for a multitude of use cases and are helping shape the next-generation composable data center. I’d like to thank our industry partners for their unwavering support and the entire Tanzanite team for their dedication and commitment in pioneering this technology and enabling us to achieve this milestone today.”

– Shalesh Thusoo, CEO, Tanzanite

“The CXL standard will play a significant role in helping the industry deliver fully composable infrastructure for the cloud. The integration of CXL across our end-to-end, cloud-optimized silicon portfolio will bring new levels of data center efficiency, scalability, and flexibility to power emerging metaverse and next-generation AI applications.”

– Noam Mizrahi, corporate chief technology officer, Marvell

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.