Marvell to buy Inphi in $10 billion chip deal

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Marvell Technology has announced that it is to buy Inphi in a $10 billion deal aimed at broadening the company's footprint in data centres and 5G network infrastructure

Companies such as Amazon, Google, Microsoft and Facebook use Inphi’s chips for optical connections inside data centres that power their online services.

Inphi has built a high-speed data interconnect platform that is intended to meet the demand for increased bandwidth and low power for the cloud data centres and future global networks. Inphi’s high-speed electro-optics portfolio provides the connectivity fabric for cloud data centres and wired and wireless carrier networks, just as Marvell’s copper physical layer portfolio does for enterprise and future in-vehicle networks.

By combining Marvell’s storage, networking, processor, and security portfolio, with Inphi’s electro-optics interconnect platform, the combined company will be better placed to address the needs of the data infrastructure market. This transaction expands Marvell’s addressable market, strengthens its customer base and its position in hyperscale cloud data centres and 5G wireless infrastructure.

“Our acquisition of Inphi will fuel Marvell’s leadership in the cloud and extend our 5G position over the next decade,” said Matt Murphy, president and CEO of Marvell. “Inphi’s technologies are at the heart of cloud data centre networks and they continue to extend their leadership with innovative new products, including 400G data centre interconnect optical modules, which leverage their unique silicon photonics and DSP technologies. We believe that Inphi’s growing presence with cloud customers will also lead to additional opportunities for Marvell’s DPU and ASIC products.”

The deal comes amid a rash of tie-ups in the semiconductor industry this year. Advanced Micro Devices announced earlier this week that it is to buy Xilinx in a $35 billion deal, and follows Nvidia's $40 billion purchase of Arm.