Marvell is reportedly considering acquiring Lumentum to expand its product portfolio. Talks between the two Northern California-based companies highlight a wave of mergers and acquisitions fueled by the AI boom, as investors bet on the technology’s enormous growth potential. Lumentum currently has a market capitalization of approximately US$83 billion, compared with Marvell’s US$221 billion.

Lumentum produces optical communication lasers and optical transceiver modules, positioning it as a strategically important player in the AI boom. Its growing importance has also attracted a US$2 billion investment from NVIDIA. Meanwhile, Marvell serves major technology companies, including Google, Amazon, Microsoft, Meta, and Oracle, and helps Amazon and Microsoft develop custom AI chips. Marvell has also reached a chip agreement with Google to support its in-house Tensor Processing Units (TPUs), with the deal granting Google the right to purchase up to US$12.2 billion worth of Marvell shares.

Marvell has been expanding its presence in optical communications technology. Earlier this year, it acquired photonics company Celestial AI, gaining access to its Optical Multi-Chip Interconnect Bridge (OMIB) technology. A potential acquisition of Lumentum would further broaden Marvell’s product portfolio, fill gaps in its optical component offerings, and strengthen its ability to compete with its biggest rival, Broadcom.

However, Bernstein analysts cautioned that the potential deal’s size could raise concerns over financing and integration. They noted that Marvell may be unable to fund such a large acquisition entirely with cash. As of its latest quarter, Marvell held approximately US$3.92 billion in cash and cash equivalents.

(Photo credit: Marvell)

TrendForce 2027 Infrared Sensing and Optical Communication Market Trend
1. Annual Report
Release: 01 January 2027
Format: PDF / EXCEL
Language: Traditional Chinese / English

2. Optical Communications- InP Laser Diode & InGaAs Photodiode Quarterly Price Report
a. InP Substrate- 3-inch
b. EML- 100 / 200G
c. CW-DFB LD- 50 / 70 / 100mW
d. InGaAs Photodiode- 100 / 200G
e. DSP- 800G / 1.6T
Release: 20th of February, May, August, and November, 2027
Format: EXCEL
Language: Traditional Chinese / English