Marvell Acquires Interconnect Specialist XConn Technologies in $540 Million Deal to Bolster AI Infrastructure Portfolio
January 06, 2026
In a strategic move to strengthen its position in the critical infrastructure underpinning artificial intelligence, semiconductor giant Marvell Technology, Inc. has announced the acquisition of XConn Technologies, a leading provider of PCIe and CXL switch silicon. The all-cash-and-stock transaction is valued at approximately $540 million and is expected to close in early 2026, pending customary regulatory approvals.
The acquisition underscores the escalating importance of high-speed, low-latency interconnects as AI models grow exponentially in size and complexity. Efficient data movement between processors, accelerators, and memory has become a primary bottleneck, making advanced switching technology a key competitive battleground for chipmakers serving cloud and hyperscale data centers.
This deal represents Marvell's second major strategic purchase in recent months, following its December announcement to acquire optical interconnect startup Celestial AI for up to $5.5 billion. The acquisition of XConn will specifically expand Marvell's physical layer connectivity and switching portfolio. The company stated that the integration will augment its Ultra Accelerator Link (UALink) scale-up switch team with XConn's "highly experienced engineering talent with deep domain expertise in high-performance switching."
Founded in 2020, privately-held XConn made its mark by launching the industry's first Compute Express Link (CXL) 2.0 and PCIe Gen 5.0 switch chip, named Apollo, in March 2024. Fabricated by TSMC, the Apollo chip features 256 lanes delivering a total switching capacity of 2,048 gigabits per second. The company followed in March 2025 with its Apollo 2 hybrid switch, which integrates support for the newer CXL 3.1 and PCIe Gen 6.2 protocols on a single chip, with configurations ranging from 64 to 260 lanes.
Marvell's leadership highlighted the strategic fit of the acquisition. "This combination creates a compelling switching platform for accelerated infrastructure, advancing Marvell’s connectivity strategy for next-generation AI and cloud data centers," said Matt Murphy, Marvell's Chairman and CEO. "With XConn, we add proven PCIe and CXL switch products, IP, and engineering talent... Combined with our pending acquisition of Celestial AI, we will be well-positioned to deliver customers the performance, flexibility, and architectural choice they need."
Gerry Fan, CEO of XConn, echoed the sentiment, noting, "At XConn, we have built the industry’s highest-port-count advanced PCIe 5 and PCIe 6 switching portfolio to support the next generation of accelerated infrastructure. Marvell brings cutting-edge SerDes technology, a leading process roadmap, deep hyperscale customer relationships, and global scale. We share a common vision for high-speed connectivity as the foundation of modern data centers."
The consolidation signals a period of intensified competition and investment in the data center interconnect space, as chipmakers race to provide the foundational technologies that will enable the next wave of AI innovation. For Marvell, successfully integrating XConn's technology and talent will be crucial to capturing a larger share of the lucrative AI infrastructure market.
Source: datacenterdynamics
