German semiconductor maker Infineon buys part of US rival Marvell Technology – ET Manufacturing
German semiconductor maker Infineon said Tuesday its part-acquisition of US firm Marvell Technology would better position it to supply firms working on technologies of the future, including humanoid robots.
Infineon plans to buy the automotive division of the US rival for $2.5 billion (2.3 billion euros) to profit from its ethernet technology, it said in a statement late Monday.
“It strengthens our digital control connectivity part of the company,” CEO Jochen Hanebeck said on a call for analysts on Tuesday.
“The combination is what makes the difference,” he added, giving the example of humanoid robots that need a variety of components, including ethernet cables.
Several hundred Marvell employees will join Infineon, which employs 58,000 people worldwide, the German company said, noting that the acquisition would “strengthen Infineon’s already strong footprint in the US”.
Marvell’s ethernet allows for the transfer of the large volumes of data needed to power software systems in cars and potentially other devices such as robots, Infineon said.
The business was expected to generate revenue of $225 million to $250 million for 2025 and would have a gross margin of 60 percent, Infineon said.
It added that Marvell’s Automotive Ethernet business had about $4 billion of orders in the pipeline.
German manufacturers struggle with high energy and labour costs at home and, to sell into the United States, now face the added costs of swingeing tariffs imposed last week by US President Donald Trump on dozens of trade partners.
Infineon shares were flat as of 1000 GMT and have fallen over 18 percent since Trump announced the levies last week.
