Chip Maker Marvell Buys Cavium in $6B Cloud Data Center Push

Semiconductor maker Marvell Engineering science is beefing up its presence in the data center space by buying Cavium, an enterprise server applied science vendor, for $6 billion.

The two companies desire to target the "high growth" data middle marketplace at a time when businesses are moving to the deject and carriers are deploying faster networks, generating need for more storage and better wireless connectivity, the CEOs of both companies said Monday.

"The information middle opportunity is tremendous with a combined company," Marvell CEO Matt Murphy said in a Monday conference phone call.

Marvell, based in Santa Clara, California, is perhaps all-time known for making the storage controllers in HDD and SSD memory drives. It likewise develops Wi-Fi and Bluetooth chipsets. The company intends to combine that tech with Cavium'south data center processors and enterprise networking offerings.

Marvell Cavium

Cavium's CEO Syed Ali said the merger will aid Marvel "fulfill the needs of every aspect of the data center infrastructure."

It will also put some pressure on Broadcom'southward enterprise networking business organization, said Patrick Moorhead, an annotator with Moor Insights and Strategy. Cavium has strong server computing products that can aid telecommunications carriers optimize their networks, which Broadcom doesn't accept, Moorhead said in an email.

The planned acquisition comes equally the semiconductor manufacture has been going through a menstruation of consolidation. Broadcom is attempting to buy Qualcomm, and offered $105 billion for the visitor earlier this month. Qualcomm rejected the offer, but Broadcom isn't giving up.

Marvell claims its ain acquisition will help the company generate $3.4 billion in almanac revenue. Its purchase of Cavium is expected to shut in 2022 mid-twelvemonth.