German chipmaker buys US rival's automotive unit for $2.7B

ISTANBUL

The Germany-based company Infineon, a leading chipmaker, has signed an agreement to acquire the automotive ethernet unit of its rival Marvell Technology for €2.5 billion ($2.7 billion) to strengthen its activities in the automotive sector.

According to a statement from Infineon on Monday, Marvell Technology accepted the German firm's cash offer for the automotive ethernet unit.

The acquisition is expected to be completed this year after obtaining the necessary permits.

Ethernet enables the exchange of data between software and hardware. This key technology is important for software-controlled vehicles, as well as for all electric cars.

The statement noted: "The planned investment will strengthen Infineon’s already strong footprint in the US, including extensive R&D activities."

Infineon, with 58,600 employees, is the owner of 69 research and development centers and 17 production facilities.