• Marvell Technology has agreed to buy XConn Technologies in a roughly $540MBillion cash-and-stock deal to expand its PCIe and CXL switching portfolio for AI data centre infrastructure.
• The acquisition is expected to close in early 2026, with new products contributing to revenue in fiscal 2027 and targets for about $100 million by fiscal 2028, raising questions about integration and competitive positioning.
What happened: acquisition expands switching portfolio
Marvell Technology, Inc. has entered into a definitive agreement to acquire XConn Technologies (“XConn”), a provider of advanced PCIe and CXL switching silicon used in AI and data centre connectivity, in a transaction valued at roughly $540MBillion. The deal will be funded with approximately 60% cash and 40% stock, with the stock portion based on Marvell’s 20-day volume-weighted average price, and is expected to close in early calendar 2026, subject to usual conditions and regulatory approvals.
Under the agreement, Marvell will add XConn’s PCIe and CXL switch products to its portfolio and bring on board experienced engineering talent from XConn’s team to help expand its Ultra Accelerator Link (UALink) scale-up switch group. This team is intended to support applications involving high-bandwidth, ultra-low latency connectivity needed for increasingly complex AI workloads that span multiple racks and require efficient resource sharing across systems.
XConn’s existing products include PCIe 5 and CXL 2.0 switches already in production and next-generation PCIe 6 and CXL 3.1 switches currently sampling with customers. The products are expected to begin contributing revenue in the second half of fiscal 2027, with Marvell forecasting about $100 million in additional revenue by fiscal 2028 when the acquisition becomes accretive on a non-GAAP basis.
Marvell’s CEO Matt Murphy said that the addition of XConn’s IP, products and engineering talent will help broaden the company’s capabilities in high-performance switching for AI and cloud data centres. Gerry Fan, CEO of XConn, noted the complementary nature of the combined technology portfolios and the opportunity to support evolving customer demands in large-scale AI configurations.
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Why it’s important
The acquisition highlights the growing competitive pressures in the semiconductor industry as companies position themselves for the rapid expansion of AI workloads that demand high-speed interconnects and memory-disaggregation technologies. PCIe and Compute Express Link (CXL) switches are increasingly seen as foundational components in next-generation data centre architectures, enabling efficient communication between accelerators and memory systems.
For Marvell, the XConn deal complements a larger strategy of broadening its data infrastructure offerings, which recently included plans to acquire Celestial AI for optical interconnect technology. Both moves aim to deepen the company’s relevance in AI hardware ecosystems where performance, flexibility and scalability are critical.
However, integration challenges could arise. Merging engineering teams and product sets from acquired firms often involves reconciling differing development cultures and roadmaps, which may delay product delivery or dilute focus if not managed carefully. Observers will watch how Marvell balances the XConn portfolio with its existing PCIe and CXL efforts, particularly as other rivals such as Broadcom and Nvidia continue to expand their networking and interconnect solutions.
There are also questions about market timing. While the technology for CXL and PCIe switching is maturing, widespread adoption in diverse data centre environments may take time, and performance expectations could evolve as standards like CXL 3.1 gain momentum. Furthermore, the anticipated revenue contribution — about $100 million by 2028 — suggests that tangible commercial returns are still several years away.
From a competitive perspective, the acquisition could bolster Marvell’s position in hyperscale markets that value high-performance connectivity, but broader adoption of UALink and advanced interconnect standards will depend on ecosystem support and interoperability with other vendors’ silicon platforms. Partnerships, standards alignment and customer traction will play a key role in determining whether Marvell’s expanded portfolio achieves its strategic aims.
