With Aquantia's 2.5G, 5G and 10G PHYs, Marvell intends to complement its own PHY portfolio to offer a comprehensive range of products for high-speed data transmission in cars and to implement automatic driving at levels 4 and 5. This area is expected to develop explosively in the coming years. Marvell quotes Strategic Analytics as predicting that the number of Ethernet ports in cars will increase by an average of 62 percent per year from 53 million units in 2018 to 367 million units in 2022.
According to Matt Murphy, president and CEO of Marvell, the acquisition puts Marvell at the forefront of Ethernet transceiver vendors for automotive networks. The company would also be able to penetrate sectors in the fast-growing network infrastructure market.
"Marvell and Aquantia share a vision that networks - whether they operate in autonomous cars, enterprises or cloud infrastructure - will be the foundation for the rapidly growing data-driven economy," said Faraj Aalaei, chairman and CEO of Aquantia.
In the first quarter of 2019, Aquantia posted a loss of $13.1 million. At $17 million, sales were 42 percent lower than in the previous quarter and 40 percent lower than in the same quarter last year. Faraj Aalaei was confident that Aquantia would continue to be at the forefront of technology and benefit from growth in the 802.11ax market as well as from working with Asian service providers in the 10G PON design sector, despite a weaker-than-expected quarter.
In July 2017, Marvell had already purchased CPU and SoC specialists Cavium for 6 billion dollars in order to be able to occupy a strong position in the network market.