Thought Leadership
The investment is primarily intended to strengthen the semiconductor company’s automotive business. And Infineon boss Hanebeck is enthusiastic about humanoid robots.
Infineon is buying a division of the US company Marvell Technology for 2.5 billion US dollars (around 2.3 billion euros). Specifically, it is about automotive Ethernet, i.e. technology for fast data transmission with cables in cars, as the company announced. Infineon intends to strengthen its business as an automotive supplier. The Neubiberg-based company is already the global market leader in the field of microcontrollers. And Group CEO Jochen Hanebeck sees potential applications beyond the car.
Ethernet technology complements the company’s own portfolio, emphasized the CEO. According to Infineon, Ethernet plays an important role in software-defined vehicles. The decisive factor here is that it can transmit large amounts of data with very low delays. The Marvell division now up for takeover has a strong market position in this area. According to Infineon, its customers include more than 50 car manufacturers, including eight of the ten largest.
High growth expected
Sales figures are currently still rather low – 225 to 250 million dollars are expected in the current year. However, Infineon expects strong growth – also with the help of its own strong relationships with the automotive industry. In addition, CFO Sven Schneider praised the high margins in the division.
And the business areas do not end with cars: Hanebeck also sees humanoid robots – i.e. robots with a human-like shape – as a possible application for Ethernet technology. This “physical AI” is a major growth opportunity in the coming years. Infineon is already very well positioned in this area with its existing portfolio of sensors, motor control and microcontrollers, and the Ethernet business is a perfect addition here too.
As usual, the takeover is subject to regulatory approvals, but Infineon’s management is confident. The takeover is to be financed entirely in cash – Infineon will have to take on additional debt in addition to using existing funds.
dpa
