Marvell Snags Inphi in Another Semiconductor Tie-Up

Consolidation in the semiconductor industry continues to accelerate.

Screen Shot 2020 10 29 At 10 06 13 Am

SANTA CLARA, Calif. (AP) — The pace of consolidation in the semiconductor industry continues to accelerate with Marvell Technology saying Thursday that it will pay $10.63 billion for Inphi in a cash-and-stock deal.

Marvell, which makes integrated circuits and semiconductor infrastructure, said the combined company will be reorganized and based in the U.S. Marvell is currently domiciled in Bermuda.

Shareholders of Inphi, which specializes in high-speed date transmission, will get $66 per share of Inphi stock and about 2.3 shares in the combined company. Upon closing, Marvell shareholders will own about 83% of the company, with Inphi shareholders owning the remaining 17%. The deal has been approved by both boards and is expected to close by the second half of 2021.

Earlier this week, Advanced Micro Devices said it was buying Xilinx for $35 billion in an all-stock deal that will combine the two Silicon Valley chip makers as consolidations sweep the sector at a time when a global pandemic is driving demand for tech ever higher.

Last month, Nvidia said it would buy Arm Holdings for up to $40 billion and set up an artificial intelligence research center in Cambridge, England, where Arm is headquartered. In July, Maxim Integrated Products was snapped up by Analog Devices for more than $20 billion.

The companies said Inphi’s high-speed data interconnect platform, combined with Marvell’s storage, networking, processor, and security portfolio, positions the combined company for “end-to-end technology 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 Marvell president and CEO Matt Murphy.

Ford Tamer, president and CEO of Inphi, will join Marvell’s board of directors upon closing.

More in Manufacturing