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Marvell Acquires Semiconductor Rival Cavium For $6 Billion

Marvell Technology announced that it bought rival Cavium for $6 billion. The deal would see the two combine into a company that can take on other giant chip maker giants such as Intel and Broadcom.

Marvell produces consumer semiconductor products, in addition to making integrated circuits and chips for data storage. Cavium, meanwhile, creates chips for both wireless and wired products.

The combined company is expected to generate around $3.4 billion in yearly revenue. The announcement read in part:

"This is an exciting combination of two very complementary companies that together equal more than the sum of their parts," said Marvell president and CEO, Matt Murphy. "This combination expands and diversifies our revenue base and end markets, and enables us to deliver a broader set of differentiated solutions to our customers."

The semiconductor industry has seen its fair share of changes in the past few years with companies trying to eliminate the competition by tabling bids for rival firms. Just last week, Qualcomm rejected a $130 billion bid from Broadcom, which itself was acquired in 2016 for $37 billion in 2016 by Avago Technologies. Qualcomm has also made its own moves when in 2016 it announced a buyout of NXP Semiconductors for $47 billion, which is still undergoing regulatory review.

  • keitarofujiwara
    20398690 said:
    The deal would see the two combine into a company that can take on other giant chip maker giants such as Intel and Broadcom.


    Marvell Acquires Semiconductor Rival Cavium For $6 Billion : Read more

    Giant chipmaking giants FTW
    Reply
  • aaron1990
    Hey if you can make a product at not only a reasonable cost but at the right volume and produce excellent quality it won't be hard to defeat intel since companies like products which don't bleed them dry. Most expensive afterall doesn't always mean its the best product. :P

    http://battlegroundsarmory.com/
    Reply