In a deal valued at 115 billion dollars, US chipmaker Marvell Technology has agreed to acquire compatriot optics firm Lumentum. The American companies aim to bring electrical and optical technology development closer together as rising bandwidth requirements push copper connections toward their physical limits. “AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” says Marvell CEO Matt Murphy.

Marvell contributes interconnects, network switching and custom processors, while Lumentum adds lasers, optical transceivers, optical circuit switching and indium phosphide manufacturing. Their combined portfolio would address connections ranging from links between data centers to those within advanced chip packages. The acquisition is expected to close in the first half of 2028, subject to shareholder and regulatory approval.

