Marvell Technology announced a $115 billion acquisition of Lumentum Holdings, an optical-components manufacturer. The deal represents a major consolidation in the supply chain as companies race to capture demand from AI .
Marvell, which makes custom chips for servers and networking, is using the acquisition to strengthen its position against larger competitor Broadcom. Optical components are critical infrastructure for data centers, enabling high-speed connections between servers and storage systems that power AI workloads.
The merger underscores how the AI boom is reshaping the semiconductor industry, with chipmakers integrating vertically to secure key components and compete for the massive spending wave from cloud providers building AI infrastructure.
This is an AI-written summary. The original reporting belongs to CNBC Television. How we write these · Spot a mistake?