SAN FRANCISCO, Oct 29 — US semiconductor giant Marvell said today it was buying rival Inphi in a cash-and-stock deal estimated to be worth US$10 billion (RM42 billion), the second major tie-up in the sector moving into cloud computing and 5G wireless.

The deal combines Marvell’s strength in the digital storage industry with Inphi’s operations in high-speed data movement.

The news comes two days after Advanced Micro Devices said it had struck a deal to buy chip-making rival Xilinx in a US$35 billion megadeal.

Marvell and Inphi, both based in Silicon Valley, would have a combined enterprise value of US$40 billion under the deal expected to close in 2021.

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“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 chief executive 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,” he said.

The companies said their operations are complementary and would lead to some US$125 million in cost savings through synergies. — AFP

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