Marvell has entered into definitive agreements to purchase Avera Semiconductor, the Application Specific Integrated Circuit (ASIC) business of GLOBALFOUNDRIES.
This acquisition brings together Avera Semi’s custom design capabilities with Marvell’s advanced technology platform and scale, creating an ASIC supplier for wired and wireless infrastructure. The agreements include transfer of Avera’s revenue base, strategic design wins with leading infrastructure OEMs, and a new long-term wafer supply agreement between GLOBALFOUNDRIES and Marvell.
Avera’s full custom development capabilities complements Marvell’s standard and semi-custom product portfolio. Previously part of IBM’s Microelectronics business, Avera has executed more than 2,000 complex designs in its 25-year history and built a business supported by approximately 800 technologists. Avera brings innovative design competencies in analog, mixed-signal and SoCs as well as an IP portfolio including high-speed SerDes, high-performance embedded memory and advanced packaging technology.
Marvell has also seen an expanding opportunity pipeline for custom solutions utilizing its leading IP and technology platform. For example, within 5G infrastructure, Marvell offers complete silicon platforms that enable a wide range of digital processing including baseband, processors, Ethernet switches and PHYs. As these products have gained traction in the marketplace, Marvell’s opportunity set has recently expanded to encompass a number of custom SoCs addressing a broader portion of the base station. Several of these new products are designed to replace FPGAs with purpose-built optimized silicon. At the same time, Avera has provided custom products to be deployed in the radio head of a leading wireless infrastructure OEM for multiple generations.
Under the terms of the agreement, Marvell will pay GLOBALFOUNDRIES $650 million in cash at closing plus an additional $90 million in cash if certain business conditions are satisfied within the next 15 months. The transaction is expected to close by the end of Marvell’s fiscal year 2020 pending receipt of regulatory approvals and other customary closing conditions.