May 21, 2019
Marvell announced today that it has reached a
definitive agreement to acquire Avera Semiconductor, an ASIC business of Gexin.
world-class ASIC capabilities into wireless and wired applications
• Leverage deep
IBM traditions with extensive system-level expertise and design capabilities
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
"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
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
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.