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Corporate Acquisition Marvell Acquires XConn Technologies for $540 Million

From Sebastian Gerstl | Translated by AI 2 min Reading Time

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With the acquisition of XConn, Marvell strengthens its portfolio for PCIe and CXL switches and expands its development team for scalable data center architectures.

Marvell campus in Santa Clara. The semiconductor company acquires connectivity specialist XConn for $540 million. The focus of the acquisition is on data center and AI infrastructure.(Image: Marvell)
Marvell campus in Santa Clara. The semiconductor company acquires connectivity specialist XConn for $540 million. The focus of the acquisition is on data center and AI infrastructure.
(Image: Marvell)

Marvell Technology has signed a definitive agreement to acquire XConn Technologies. The purchase price is approximately $540 million, with about 60 percent paid in cash and 40 percent in stocks. The transaction is expected to close in early 2026, subject to regulatory approvals.

XConn develops switching silicon for PCI Express and Compute Express Link. These technologies are becoming increasingly important in data centers as AI workloads scale beyond individual racks, requiring closer integration of accelerators, processors, and memory.

Focus on Networking in AI Systems

With the acquisition, Marvell expands its existing switching portfolio with XConn's PCIe and CXL products. At the same time, a development team experienced in designing high-performance switch architectures joins Marvell. The focus is on scale-up networks within AI systems.

A technical reference point is UALink, an open industry standard for connecting multiple accelerators within a system. UALink is built on the PCIe ecosystem and aims for high bandwidth with low latency to efficiently link distributed computing resources.

PCIe switches have long been a part of traditional server architectures. In AI systems, they increasingly take on the role of an internal fabric, for instance, connecting multiple GPUs or specialized accelerators. At the same time, CXL is gaining relevance, especially for memory expansion and disaggregation.

XConn states that it is collaborating with more than 20 customers. PCIe 5 and CXL 2.0 switches are already in mass production, while PCIe 6 and CXL 3.1 components are currently being evaluated by customers. This roadmap complements Marvell's existing activities in high-speed I/O.

Financially, Marvell expects XConn's products to contribute to revenue starting in the second half of fiscal year 2027. For fiscal year 2028, the company anticipates approximately $100 million in revenue from the XConn portfolio.

Strategically, the acquisition aligns with Marvell's focus on data center and AI infrastructure. The market for PCIe and CXL switching is considered growing as system architectures become more complex and traditional point-to-point connections reach their limits.

For users in the electronics and systems industry, the merger primarily means a consolidation of expertise and product lines. Whether and how quickly integrated solutions emerge will largely depend on how swiftly Marvell integrates XConn's technology and personnel into its development and production processes. (sg)

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