Marvell Technology, Inc., a leading provider of data infrastructure semiconductor solutions, announced that it has signed a definitive agreement to acquire XConn Technologies (“XConn”), a specialist in advanced PCIe and CXL switching silicon. This strategic acquisition enhances Marvell’s switching portfolio by integrating XConn’s cutting-edge PCIe and CXL products while bolstering its Ultra Accelerator Link (“UALink”) scale-up switch team with seasoned engineering talent and deep expertise in high-performance switching.
As AI workloads continue to expand, data center system architectures are evolving from single-rack deployments to larger, multi-rack configurations. These next-generation platforms increasingly demand high-bandwidth, ultra-low latency scale-up fabrics, such as UALink, to connect large numbers of XPUs efficiently and enable flexible resource sharing across systems.
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UALink, an open industry standard designed for scale-up connectivity, facilitates high-speed, efficient communication, allowing multiple accelerators to function together as a unified system. Building on decades of PCIe ecosystem experience, UALink incorporates proven high-speed I/O techniques to meet the stringent bandwidth, latency, and reach requirements of advanced AI and cloud infrastructure.
By combining forces, Marvell and XConn create a significantly larger, integrated team capable of addressing the growing UALink switching market while supporting an expanding roster of customers and partners seeking next-generation AI platforms.
“This combination creates a compelling switching platform for accelerated infrastructure, advancing Marvell’s connectivity strategy for next-generation AI and cloud data centers,” said Matt Murphy, chairman and CEO of Marvell. “With XConn, we add proven PCIe and CXL switch products, IP, and engineering talent to expand our UALink scale-up switch team. Combined with our pending acquisition of Celestial AI, we will be well positioned to deliver customers the performance, flexibility, and architectural choice they need as AI systems grow in size and complexity.”
“At XConn we have built the industry’s highest-port-count advanced PCIe 5 and PCIe 6 switching portfolio to support the next generation of accelerated infrastructure,” said Gerry Fan, CEO of XConn. “Marvell brings cutting-edge SerDes technology, a leading process roadmap, deep hyperscale customer relationships, and global scale. We share a common vision for high-speed connectivity as the foundation of modern data centers, and we look forward to working together to help customers drive new waves of AI innovation.”
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The XConn acquisition also expands Marvell’s Total Addressable Market (TAM) by addressing growing PCIe and CXL switching opportunities. PCIe switching, a long-standing cornerstone of traditional computing, is becoming increasingly critical for accelerated infrastructure, while CXL is emerging as a key enabler of memory disaggregation in modern data centers. Integrating Marvell’s CXL memory-expansion controllers with XConn’s CXL switches will create the industry’s most comprehensive CXL portfolio, supporting demanding AI workloads.
XConn’s products are already in production with more than 20 customers, including PCIe 5 and CXL 2.0 switches, while PCIe 6 and CXL 3.1 switches are currently in sampling. Marvell expects these products to start contributing to revenue in the second half of fiscal year 2027, with XConn projected to generate approximately $100 million in revenue by fiscal 2028, enhancing Marvell’s non-GAAP earnings.
Marvell will acquire XConn for approximately $540 million, combining roughly 60% cash and 40% stock, with the stock portion valued based on Marvell’s 20-day volume weighted average price (VWAP), representing around 2.5 million shares of common stock.
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