Marvell Acquires Inphi For Cloud Push

Consolidation in the chip sector continues with Marvell purchasing Inphi for $10 billion, to deepen cloud data centre and 5G push

Integrated silicon solutions specialist Marvell has announced it is acquiring data movement specialist Inphi for $10 billion.

Marvell has long specialised in providing processors for the cloud computing platforms and data centres, and the Inphi cash-and-stock deal will see it bolster its credentials in moving large amounts of data, as well as 5G.

The acquisition is the latest development after a splurge of consolidation in the chip sector of late. Earlier this week Advanced Micro Devices (AMD) confirmed it is purchasing HPC leader Xilinx for a hefty $35 billion.

Inphi deal

Other significant deals has seen Nvidia in September acquire UK-based chip designer ARM for $40 billion (£31.2bn).

That came after four years after SoftBank had acquired ARM for $32bn.

As part of Marvell’s acquisition of US-based Inphi, which has been unanimously approved by the boards of directors of both companies, Marvell intends to reorganise so that the combined company will be domiciled in the United States, which it says will create a “US semiconductor powerhouse with an enterprise value of approximately $40 billion.”

Marvell is headquartered in Silicon Valley, but is currently domiciled in Bermuda. This will change going forward.

So why Inphi?

Well that firm has specialised in offering a high-speed data interconnect platform uniquely suited for speedy transfer of large data sets.

Cloud data centres

“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,” said Marvell.

It feels that Inphi’s tech will combine well with Marvell’s storage, networking, processor, and security portfolio, giving the combined company “leadership in data 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,” said Murphy. “We believe that Inphi’s growing presence with cloud customers will also lead to additional opportunities for Marvell’s DPU and ASIC products.”

“Marvell and Inphi share a vision to enable the world’s data infrastructure and we have both transformed our respective businesses to benefit from the strong secular growth expected in the cloud data center and 5G wireless markets” added Ford Tamer, President and CEO of Inphi.

Tamer will join Marvell’s Board of Directors.

There is no news on any possible redundancies.