Marvell Acquires XConn Technologies, Boosting AI Data Center Connectivity Leadership

Marvell Technology, Inc., based in Santa Clara, California, has announced a significant acquisition that bolsters its leadership in AI data center connectivity. The company will acquire XConn Technologies, known for its advanced PCIe and CXL switching silicon products, in a deal valued at approximately $540 million.

Key Details of the Acquisition

This acquisition will enhance Marvell’s switching portfolio by integrating XConn’s cutting-edge products into its Ultra Accelerator Link (UALink) scale-up switch team. It will also expand Marvell’s engineering capabilities by adding experienced personnel from XConn.

• Acquisition value: Approximately $540 million.
• Payment structure: 60% cash and 40% stock, equivalent to about 2.5 million shares of Marvell common stock.
• Anticipated closing: Early calendar 2026, pending regulatory approvals.

Enhancing AI Infrastructure

The collaboration between Marvell and XConn is expected to address the evolving needs of data center architecture, particularly as AI workloads grow. AI environments are increasingly shifting from single-rack setups to multi-rack configurations requiring high-bandwidth, low-latency connections.

UALink serves as a vital solution for effective multi-accelerator connectivity, allowing systems to operate seamlessly as a unified framework. This innovation builds upon decades of PCIe ecosystem advancements.

Market Expansion Opportunities

Marvell’s acquisition of XConn will allow the company to tap into a vast Total Addressable Market (TAM) for PCIe and CXL switches. These technologies are foundational to modern computing architectures and critical for advanced memory disaggregation in data centers.

• Current engagements: XConn has over 20 active customers.
• Product readiness: PCIe 5 and CXL 2.0 switches are in production; PCIe 6 and CXL 3.1 switches are sampling.
• Revenue expectations: Contribution anticipated in the second half of fiscal year 2027, reaching approximately $100 million by fiscal 2028.

Strategic Vision

According to Matt Murphy, CEO of Marvell, this acquisition positions the company to enhance its connectivity strategy, especially within AI and cloud data centers. Gerry Fan, CEO of XConn, highlighted the partnership as pivotal in delivering high-speed connectivity essential for modern data centers.

The integration of XConn’s expertise and product line is expected to strengthen Marvell’s capacity to respond to the ever-growing demands for accelerated infrastructure and AI-driven solutions.

With strategic moves like this acquisition, Marvell aims to solidify its reputation as a leader in AI data center connectivity, setting the stage for significant advancements in high-performance computing technologies.