Marvell Technology, a US semiconductor company, has announced an agreement to buy Lumentum, which makes optical chips and networking gear, in a transaction valued at roughly $115 billion including debt. The announcement came on 2 November. The figure tops Microsoft’s $68.7 billion purchase of Activision Blizzard and Dell’s $67 billion buy of EMC, placing it among the largest technology acquisitions ever disclosed.
Both firms sit in the fast-growing artificial intelligence supply chain. Marvell builds specialised chips that move and process data in data centres, networking kit, and AI computing systems. Lumentum focuses on optical technologies—lasers and components that send information as light—which matter more as AI facilities expand and need faster links among thousands of processors. Copper wiring struggles over longer distances with such heavy traffic; light-based links can raise speed and improve power efficiency. Together, the companies say they want fuller connectivity products for future AI data centres.
How the all-stock deal is structured
Under the agreement, Marvell will pay with its own shares rather than cash. Lumentum shareholders are to receive 4.5 Marvell shares for each Lumentum share. After completion, existing Marvell shareholders are expected to own about 67% of the combined company, with Lumentum shareholders holding the remaining 33%.
Matt Murphy, Marvell’s chairman and chief executive, will continue to lead the combined business. Three members of Lumentum’s board, including chief executive Michael Hurlston, are to join Marvell’s board. The companies expect the acquisition to close in the first half of 2028, provided shareholders and regulators approve.
Why Marvell is pursuing the purchase
Marvell argues that demand for AI connectivity gear will keep rising as firms build larger data centres. Modern AI systems rely on thousands of specialised processors working together, and linking them efficiently is getting harder as data volumes grow. Marvell supplies chips that process and transfer that information; Lumentum supplies optical parts that carry it as light. Combining the two could let the group sell more complete solutions to data-centre operators.
Marvell estimates the combined business could address a market opportunity of about $550 billion and expects more than $1 billion in annual cost savings over time. Those numbers are company projections, not guaranteed results.
Nvidia’s $4 billion stake in both firms
In March 2026, Nvidia announced a $2 billion investment in Lumentum tied to advanced optical technologies, research, manufacturing expansion, and laser components for AI infrastructure. Later that month it announced a separate $2 billion investment in Marvell focused on AI infrastructure connectivity, including optical networking and semiconductors. The two announced stakes total $4 billion and underline how central networking has become as AI systems need faster links among processors, servers, and sites.
Timeline: what has happened so far
- March 2026: Nvidia announces a $2 billion investment in Lumentum for advanced optical and laser work aimed at AI infrastructure.
- Later in March 2026: Nvidia announces a separate $2 billion investment in Marvell for AI connectivity, optical networking, and related semiconductors.
- 2 November: Marvell announces an all-stock agreement to acquire Lumentum at about $115 billion including debt.
- First half of 2028 (expected): The companies aim to close the deal if shareholders and regulators approve.
Aasan alfaaz mein
Marvell naam ki American chip company Lumentum ko roughly 115 billion dollar mein kharidne ka deal announce kiya hai. Payment cash se nahi, balkay shares se hogi. Dono companies AI data centres ke liye chips aur light-based connections banati hain. Agar shareholders aur regulators manzoor karen to deal 2028 ke pehle half mein complete hone ki umeed hai.
