Marvell announced today that it has reached a definitive agreement to acquire Avera Semiconductor, an ASIC business of Gexin.
• Inject world-class ASIC capabilities into wireless and wired applications
• Leverage deep IBM traditions with extensive system-level expertise and design capabilities
• Extend Marvell's 5G base station coverage
• Covering a significant source of income
The acquisition combines Avera Semi's leading customer design capabilities with Marvell's advanced technology platform and scale to create a leading ASIC provider for wired and wireless infrastructure OEMs. The agreement includes a transfer of the Avera revenue base, a strategic design winning bid for leading infrastructure OEMs, and a long-term wafer supply agreement between the grid and Marvell.
Under the terms of the agreement, Marvell will pay $650 million in cash to the grid at the completion of the transaction. If the business conditions are met before the transaction is completed, the company will pay an additional $90 million in cash. The transaction is expected to be completed in Marvell's fiscal year 2020 and is awaiting regulatory approval and meeting other customary closing conditions.
As a acquirer, Avera has a highly innovative design capability for analog, mixed-signal and system-on-a-chip, and a rich IP portfolio for high-speed SerDes high-performance embedded storage and advanced packaging technologies. They have strong relationships with blue chip cable and wireless network OEMs to provide customized solutions for multi-generation converters, routers and base stations. Recently, Avera has been involved in emerging opportunities and is developing multiple projects for the next generation of cloud data centers.
Marvell President and CEO Matt Murphy said: "The acquisition of Avera will enable us to offer a complete range of product architectures ranging from standard and semi-custom to full ASIC solutions. Their experienced design team is integrated with Marvell's leading technology platform, we will Being in a better position can make better use of our expansion opportunities in wired and wireless infrastructure, and immediately start the fast-growing 5G base station market. In addition, we look forward to further deepening cooperation with the grid in the next few years or even longer. ”
"This agreement reaffirms our commitment to focus on our core business. As a manufacturing service provider, we are committed to providing differentiated wafer products while building deeper relationships with leading customers in all industries," said Tom Caulfield, CEO of Georgian. Level of cooperation. Through this transaction and a strategic partnership with Marvell, the teams of the two companies will usher in new opportunities to leverage the extensive products of the company to capture the 5G infrastructure market and other opportunities. We look forward to the future Ten years has become a strategic supplier to Marvell."
Avera Semiconductor LLC is a wholly-owned subsidiary of Gexin in November 2018, dedicated to providing custom silicon solutions for a variety of applications.
How can a company that was founded less than a year be sold?
It is understood that Gexin sold Avera this time as part of its restructuring. As the company stopped developing the 7nm process and turned to professional process technology, their customer base and business will also undergo major changes.
Since Gexin decided to transform its business and reduce operating costs, since last year, Gexin has sold some fabs:
• In January, the company sold the Fab 3E 8-inch wafer fab in Singapore to the world's leading semiconductors under the founding power of TSMC at a transaction price of US$240 million.
• Gexin originally planned to invest in a $10 billion fab in Chengdu, China, in February this year, and there has been no news of new developments, basically in a state of suspension;
• In April, Gexin also announced an agreement with ON Semiconductor to sell the Fab 10 12-inch wafer fab in New York, USA, to Anson for $430 million.