$MRVL (Marvell Technology) Adderall fueled DD: A comprehensive look at the acquisition of Inphi and Innovium, Marvell’s 5G exposure, the automotive segment, as well as the networking and data centre segment. via /r/wallstreetbets #stocks #wallstreetbets #investing


$MRVL (Marvell Technology) Adderall fueled DD: A comprehensive look at the acquisition of Inphi and Innovium, Marvell’s 5G exposure, the automotive segment, as well as the networking and data centre segment.

This DD has been written using a broad range of sources. Reddit often doesn’t like financial links so I have not referenced these. The DD is written in my own words from scratch, but infers a lot of information from these sources. I will link any direct quotes. If you require any of these sources for your own research, please PM me and I’ll dig through my history.

This DD was written on too much Adderall.

I’ve decided to include the TL;DR of the TL;DR’s at the top, as a lot of you don’t like to read, please find this straight after the ‘What is Marvell?’ section.

What is Marvell?

  • It develops, designs and sells analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits.
  • It offers a portfolio of Ethernet solutions; including controllers, network adapters, physical transceivers and switches. As well as single or multi core processors, application specific integrated circuits, printer SoC products and application processors.
  • The company provides a range of storage controllers for HHDs and SSDs that support various host system interfaces such as SAS, SATa, PCIe, NVMe. As well as fiber channel products, including host bus adapters and controllers for server and storage system connectivity. It is essentially a data infrastructure semiconductor solutions provider. It’s storage and networking products cater for data centre, carrier/5G and automotive applications.

Here is what Carillon Tower Advisers has to say about Marvell Technology Group Ltd. in its Q4 2021 investor letter:

“Marvell Technology provides infrastructure semiconductor solutions. Investors have recently appreciated the particularly strong growth the company has posted, as it is winning designs in the datacenter server market as well as winning notable contracts in the upcoming 5G wireless infrastructure build-outs. Supply chain issues had hampered growth in 2021 for the company, but with some improvements there recently, we believe Marvell is set to exhibit robust growth in the upcoming year.”

General TL;DR/TL;DR of the section TL;DR’s:

  • Marvel acquired Inphi in April 2021, a strong company in electro-optics, serving hyperscale cloud providers. The deal is expected to drive long-term incremental growth by 5% on avg through 2025. Inphi could account for 30% of Marvell’s revenue by 2025. Dr. Ford Tamer (Inphi’s president/CEO) joins the board of directors at Marvell.
  • Marvell has acquired Innovium for $1.1 billion in, which had a 29% market share in Q4 2020. The deal allows Marvell to obtain a more substantial portfolio to face the future in networking. Marvell now can compete more broadly against competitors (Broadcom, Intel, Texas Instruments, and Microchip). Marvell now has stronger momentum with hyperscalers and cloud service providers. The Innovium CTO/Founder Puneet Agarwall, with 20 years of experience, has joined Marvell as an advisor. This deal strengthens Marvell’s cloud data centre game and position in the Ethernet switch semi market. It also secures Innoviums channels in the merchant cloud semi switching market.
  • Marvell will innovate in 5G via the Inphi acquisition, and it already has high-speed optical interconnect systems. Hyperscale data centres are using Marvell’s technology. It has also collaborated with Dell to launch the “Dell Open RAN Accelerator Card”. Marvell is showcasing it’s Open RAN technology at MWC 2022. It is also collaborating with Meta. 5G is a rapidly expanding technology set to transform entire industries.
  • Marvell’s Brightlane targets ADAS and in-vehicle infotainment. It is expected to grow in this segment due to increasing demand. Despite a significant decline in the automotive industry due to COVID, it is expected to grow in future due to: vehicle safety, regulations, rising disposable income, rising popularity of ADAS, the emergence of MEMS (Micro-electromechanical systems), Internet of Things (IoT) demand, increasing demand for (lightweight, electric and hybrid) vehicles.
  • Networking/data centre’s revenue contribute to 41% of the total revenue in Q4 2021. Carrier Infrastructure is separately contributing to revenues. The company provides a broad range of ethernet switch chips, processors and baseband chipsets as well as custom ASICs for edge, cloud and carrier customers. It has a partnership with TSMC. It also provides storage solution products used in SSDs and HDDs, which are in turn used in data centres.
  • To summarise, Marvell is very well positioned to take advantage of data centre growth, 5G buildup, and connected and autonomous vehicles.

In the next part of the DD I will cover: * Storage controllers. * Security solutions. * Data Processing Units (DPU’s). * Information around earnings, options interest, future growth, technical analysis etc. * Any other notable topics I find that I haven’t already covered.

Marvell acquired electro-optics supplier Inphi for data centres:

This deal was completed in April 2021, it is expected to lead to strong long-term incremental revenue growth of 5% on average through 2025 driven by the fast-growing silicon photonics market. It is also expected to grow networking revenues over 70% YoY by Q2 2022. Inphi’s strength is in electro-optics, serving hyperscale cloud providers such as Amazon and Google/Alphabet. The combination of Inphi’s platform with Marvell’s copper Ethernet PHY will create a high speed data interconnect platform, which should outperform or stand above others. This acquisition will drive growth for Marvell, and could lead to being a 30% piece of Marvell’s total revenue by 2025. This will increase Marvell’s momentum in the cloud data centre market.

Dr. Ford Tamer served as Inphi’s president and CEO for more than nine years. Under his leadership Inphi became a market leader for electro-optics solutions. He has been appointed to Marvell’s board of director upon the acquisition. He previously served as CEO of Telegent Systems, and SVP/GM of Broadcom’s Infrastructure Networking Group. He will be a valuable member of the board.

Inphi produces high-speed analog and mixed-signal semiconductor components and optical subsystems for the communications and computing markets. It also offers a high speed interface between analog signals and digital information in systems including telecommunications transport systems, enterprise networking equipment, data centre and enterprise servers, as well as storage platforms.

Core technologies:

  • High-speed analog ICs
  • PAM4
  • Coherent DSPs
  • Silicon photonics
  • Digital signal processors
  • TiAs
  • Drivers
  • Retimers
  • Gearbox
  • Opto-electronics

Franchise products:

  • COLORZ
  • Polaris™ 1st 200G PAM4 DSP
  • Vega™ PAM4 FEC Gearbox Retimer
  • Porrima™ 400G PAM4 DSP
  • Spica™ 800G DSP
  • PAM4 Silicon
  • DWDM optical modules

  • Marvell CEO statement:*

“I am excited to welcome the Inphi team to Marvell and look forward to realizing the tremendous value creation potential of this combination for our customers, employees and shareholders. Together we will have the portfolio, capabilities, and scale to expand Marvell’s leadership in its key growth end markets of 5G, Cloud and Automotive,” said Matt Murphy, president and CEO of Marvell. “I am also pleased that we are now organized as a U.S. company and we look forward to continuing to drive innovation in semiconductor technology critical to the nation’s data economy.”

Inphi CEO statement:

“Marvell and Inphi share a vision to enable the world’s data infrastructure and we have both transformed our respective businesses to benefit from the strong secular growth expected in the cloud data center and 5G wireless markets” said Ford Tamer, President and CEO of Inphi.

Section TL;DR:

  • Marvell acquired Inphi in April 2021.
  • Expected to drive long-term incremental revenue growth 5% on avg through 2025, and grow networking revenues 70% YoY by Q2 2022.
  • Inphi is strong in electro-optics, serving hyperscale cloud providers (eg Amazon and Google/Alphabet).
  • With combined products, this deal will lead to a market leading high-speed data interconnect platform.
  • Inphi could account for 30% of Marvell’s revenue by 2025..
  • Dr. Ford Tamer (Inphi’s president/CEO) joins the board of directors at Marvell.
  • Inphi is based in the communications, computing, telecommunications transport systems, enterprise networking equipment, data centre, and enterprise servers, as well as storage platforms.

Innovium Acquisition:

Innovium develops and deploys it’s technologies to address the most challenging issues facing cloud and edge data centres. It specialises in advanced scalable Ethernet switch silicon, with the goal of providing clients with a single consistent scalable switch architecture that offers both high performance and a good feature set. It’s leading product is Teralynx, an Ethernet switch silicon family which delivers analytics, standards-based programmability, and power efficiency. This enables data centres and companies to deploy fewer network switches and tiers; thereby reducing cost, power and latency. Marvell adds engineering resources to innovate in cloud-optimised silicon through the Teralynx platform, to be named the Prestera 9K product series (Marvell also plans to advance its 2K and 8K product series which are aimed at the enterprise and carrier switch market).

The deal was completed in October 2021, it had a $1.1 billion price tag, including Innovium cash and exercise proceeds worth approximately $145 million. This resulted in a net cost to Marvell of $955 million. Innovium had an impressive market share of 29% in Q4 2020, and is the only company so far to challenge Broadcom which had a 70% market share. This acquisition allows Marvell to obtain a more substantial portfolio to face what lies ahead in networking (chiplets, onboard optics, and silicon photonics). It also allows it to grow ASIC market share, with more OEM/ODM ASIC choices, and increased innovation and R&D in this market. Ethernet switches will be critical to deploying AI and Machine Learning, and other future workload technologies. Marvell can now complete more broadly against competitors such as Broadcom, Intel, AMD, ARM, Texas Instruments, and Microchip. Following the acquisitions of Inphi and Innovium, Broadcom and Intel will need to step up their game and directly respond, or risk falling behind the strong momentum Marvell has with hyperscalers and other cloud service providers.

Now Marvell can target a wider range of chip-level cloud DC needs, including:

  • Cloud-optimized Ethernet switches per the Innovium deal
  • High-speed Electro-Optical PAM4 and Coherent DSP chipsets (Inphi)
  • OCTEON-based DPUs for security, offload, and acceleration
  • Custom Arm-based service CPUs
  • Full custom ASICs
  • Bravera Flash and HDD-based storage
  • Pluggable COLORZ DCI modules

Innovium’s CTO and Founder Puneet Agarwall, with 20 years of experience in developing groundbreaking products, has joined Marvell following this acquisition. He will serve as an advisor to Marvell, and the talented Innovium team will continue to grow the cloud-optimised switch solutions that they provide.

This acquisition has essentially further stepped up Marvell’s cloud data centre game, further developing their strength in the Ethernet switch semiconductor market, and allowing them to participate in the fastest growing segment of this market. Marvell has also secured Innovium’s channels throughout the merchant cloud semiconductor switching market. This acquisition is a move to target the biggest data centre spenders in the world, including Amazon Web Services, Microsoft and Google.

“Data center capex spending by hyperscale operators—led by AWS, Microsoft, Google and Facebook— reached $38 billion in just the first quarter of 2021 alone, according to IT research firm Synergy Research Group.” (CRN)

Marvell CEO statement:

“Our acquisition of Innovium and its complementary offerings further extends Marvell’s leadership in the cloud, and I am excited that Innovium has secured significant share at a marquee cloud customer,” said Matt Murphy, President and CEO of Marvell. “Innovium has established itself as a strong cloud data center merchant switch silicon provider with a proven platform, and we look forward to working with their talented team who have a strong track record in the industry for delivering multiple generations of highly successful products.”

Innovium CEO statement:

“The Innovium vision is centered on delivering breakthrough switch silicon and choice for next-generation cloud and edge data centers. Bringing technology leadership and customer-focused innovation to the market is what drives our team every day,” said Rajiv Khemani, CEO and Founder of Innovium. “I want to recognize and thank our valued employees for their passion, commitment, and outstanding execution. We are excited to join Marvell and accelerate the growth of our business, partnerships, and solution value, while contributing to the company’s fast-growing cloud opportunity.”

‘“For hyperscale operators, the pandemic proved to be more of a stimulus to growth rather than a barrier,” said John Dinsdale, a chief analyst at Synergy Research Group, in an email to CRN. “Over the last four quarters, we continued to see extremely strong growth in revenue, capex and data center spending.”

Dinsdale said given the ongoing growth in service revenue for hyperscalers and the “ever-increasing need for a larger global data centre footprint,” Synergy is forecasting double-digit growth in hyperscale capex over the next several years.’ (CRN, Aug 09 2021)

Section TL;DR:

  • Innovium specialises in advanced scalable Ethernet switch silicon.
  • It’s leading product is Teralynx, enabling data centres/companies to deploy fewer network switches and tiers; thereby reducing cost, power and latency.
  • Marvell will innovate upon Teralunx to introduce the Prestera 9K product series.
  • Deal had a $1.1 billion price tag, completed in October 2021.
  • Innovium had a 29% market share in Q4 2020, it is the only company to challenge Broadcom (70% market share).
  • Deal allows Marvell to obtain a more substantial portfolio to face the future in networking, as well as growing ASIC market share. Ethernet switches critical to deploying AI/ML/other future workload technologies.
  • Marvell now can compete more broadly against competitors (Broadcom, Intel, Texas Instruments, and Microchip). Marvell now has stronger momentum with hyperscalers and cloud service providers.
  • Innoviums CTO/Founder Puneet Agarwall, with 20 years of experience, has joined Marvell. He will serve as an advisor, and the Innovium team will continue to grow cloud-optimised switch solutions.
  • This deal strengthens Marvell’s cloud data centre game and position in the Ethernet switch semi market. It also secures Innoviums channels in the merchant cloud semi switching market.

Other Acquisitions:

Throughout the years Marvell has acquired numerous companies. Here is the full list, if you want to do your own research

Marvell’s 5G exposure:

Marvell will innovate in 5G through its acquisition of Inphi. Marvell optical interconnect solutions reliably move 100’s of gigabits per second, even over large distances (thousands of kilometers). Marvell has also been awarded numerous Supplier of the year awards by the world’s leading optical module companies.

Many carriers are choosing Marvell’s optical connectivity technology to meet stringent requirements in the 5G sector. Announced in 2017, the Polaris PAM4 DSP which is Marvell’s foundation technology for 5G networks has shipped millions of ports. Hyperscale data centres have been connected using Polaris by some of the world’s most demanding tier one cloud providers. Building on the success of Polaris, Marvell have recently released the [AtlasOne PAM4 DSP](marvell.com/content/dam/marvell/en/public-collateral/dsp/marvell-atlas-product-brief.pdf).

“From Smart Cities to wireless industrial automation, to autonomous driving and good ‘old fashioned’ smartphone video or gaming, the fifth generation of wireless technology can truly transform how we live and work. The ability of 5G to enable innovative new services and enhanced mobile broadband experiences requires increased transport bandwidth that connects all key elements of the in the data path from the radio tower, across the edge to the core network. With superior performance, reliability and economies of scale proven with hyperscale data center operators, direct detect optics utilizing robust PAM4 modulation are playing an essential role in developing future-ready 5G infrastructure — today.” (Marvell)

Marvell partners with Dell to bridge 5G Open RAN performance gap:

Marvell and Dell have launched a solution to address the current performance challenges of Open RAN deployment in virtualized distributed unit environments. This accelerator card is used for servers in 5G networks. It was announced on the 22nd of February ahead of the Mobile World Congress (MWC) conference. Named the “Dell Open RAN Accelerator Card”, it uses Marvell’s Octeon. Octeon is a chip that handles networking and security chores. They can scale to 16 cores and are programmable. Octeon is often found in a network interface controller, and when loaded with modestly-powerful compute cores and a little storage these NIC’s become a SmartNIC. SmartNICs are now the standard for hyperscalers such s Alibaba, Baidu and Google/Alphabet. As they work to move data, SmartNICs are now described as data-processing units (DPUs), and are essential for demanding workloads like AI/ML. I will cover DPU’s in more detail later in this DD.

With that information on Octeon, let’s move back to the Accelerator Card. The use of Octeon enables the CPU’s housed in the PowerEdge servers used in 5G networks to be freed from processing Layer 1 traffic, hence allowing the CPU’s to focus on running the Open RAN. Freeing up the CPU for critical workloads, and instead using an accelerator to handle plumbing is the same reasoning Intel, Nvidia, Pensando, and most hyperscale clouds offer adding DPU’s to servers.

The card, which is designed for Dell PowerEdge and other x86-based servers, also features PTP syncing, which enables various parts of a telco network to be synchronised. This thereby eliminates the need for additional modules in order to orchestrate the synchronisation.

‘Speaking with ZDNet, Dell Technologies Asia Pacific and Japan head of telecom Sam Saba explained the Open RAN Accelerator Card has been designed to bring the performance of traditional RAN solution to Open RAN. “[There’s] this gap of performance and energy consumption. Effectively, we believe now this card will bridge that performance,” he said. “The way we’re doing this is through what we call the layer 1 offload. With that, we’re looking at taking all that layer 1 processing out of the standard CPU that sits in the server, which occupies 60-70% of overall processing capacity … and putting it in a PCIe card in line into the virtual distributed unit close to the base station … in doing that we’re effectively relieving, or releasing, a lot of the capacity in the standard processing card to do more processing.”’ (ZDNet)

‘“Marvell is delighted to partner with Dell Technologies to enable an open, virtualised 5G RAN architecture that delivers advanced features and performance built on our proven OCTEON Fusion platform,” said Raj Singh, executive vice president, Processors Business Unit at Marvell.

“The new Dell Open RAN Accelerator Card is an innovative no-compromise, cloud-native, in-line, Open RAN Layer 1 acceleration solution that addresses the shortcomings of existing vRAN alternatives.”

“We’re pleased to see Dell Technologies and Marvell come together to innovate and create technologies that will enhance Open RAN platform capability and vendor diversity for operators,” said Andy Dunkin, Open RAN RF and digital platform development manager at Vodafone.

“The promise of virtualised Open RAN platforms will be enhanced with the Dell Open Ran Accelerator Card that should offer network operators like Vodafone a less costly and more efficient path to Open RAN.”

‘Marvell Technology : showcases its new no-compromise Open RAN solution with ecosystem partners (ARM and Meta) using best of cloud, wireless compute architectures’ (marketscreener/Marvell):

I could only find one article for this, but it appears that Marvell is also separately showcasing it’s Open RAN architecture (linked to the previously mentioned one, but not in collaboration with Dell. It appears the Dell card builds upon this technology). This uses its Octeon Fusion processor, and is in collaboration with ARM and Meta to drive adoption of 5G Open Ran solutions. Marvell’s new 5G Open RAN Accelerator will be on display at Mobile World Congress 2022, at the ARM booth. Marvell has extensive compute collaboration with ARM, and it is possible that this will increase Open RAN capabilities for ecosystem initiatives such as the Meta Connectivity Evenstar program, which is aiming to expand the global adoption of Open RAN.

5G is already a rapidly expanding technology, which is being rolled out by every major operator worldwide. 5G’s high bandwidth and low latency is powering applications such as the metaverse, autonomous driving, industrial Internet of Things (IoT), private networks and more. 5G is set to transform entire industries, serving the world’s connectivity needs for years. The networks themselves are undergoing changes in architecture, specifically, that significant portions of the 5G radio access network (RAN) are moving into the cloud. Hyperscale clouds as well as software defined networks, have accelerated innovation, value creation and growth across nearly every industry. It is a data centre revolution, where technologies such as virtualisation, disaggregation and open standards enable agility, efficiency and massive scalability. These benefits have great appeal to 5G carriers that are pursuing large growth opportunities in the industrial and enterprise markets.

With disaggregation and open interfaces, carriers will also have the opportunity to evolve 5G RAN to a more flexible architecture which optimises bandwidth, power and cost, thereby allowing diverse network traffic conditions and advanced features such as a Massive MIMO.

The Evenstar program by Meta Connectivity is a collaborative industry effort working towards expanding the global adoption of Open RAN. Through a unified platform architecture, Evenstar removes interoperability risk and helps mobile network operators deploy Open RAN solutions. Meta Connectivity is collaborating with Marvell to optimise performance, cost and power efficiency in 5G Networks.

“We at Marvell are proud of our collaborations with Arm and Meta Connectivity to facilitate 5G-Cloud convergence. Our no-compromise 5G Open RAN solution represents a big step forward. With open standards and proven, best-in-class RAN features and the virtualization and scaling techniques used in the most advanced clouds, we are helping to realize the promises of 5G and fuel our world with intelligent connectivity.” (Marvell)

Section TL;DR:

  • Marvell will innovate in 5G via Inphi acquisition.
  • Marvell has high speed optical interconnect systems.
  • Hyperscale data centres are using Marvell’s technology.
  • Marvell and Dell have launched an Open RAN solution called the “Dell Open RAN Accelerator Card”, which allows the CPU in PowerEdge severs used in 5G networks to focus on running Open RAN.
  • Marvell is showcasing it’s Open RAN technology in the ARM booth at the Mobile World Congress 2022.
  • It is also collaborating with Meta for the Meta Connectivity Evenstar program.
  • 5G is a rapidly expanding technology set to transform entire industries.

Automotive industry:

Marvell’s Brightlane Ethernet chips are targeted for ADAS (advanced driver-assistance systems) and in-vehicle infotainment. This is one of Marvell’s smallest market segments, but Marvell is expecting to grow in this area due to increasing demand. Marvell offers a complete portfolio of Automotive Brightlane Ethernet PHY, tracievers, bridges and switches supporting speeds of 100Mbps to 10Gbps with enhanced safety and security features. These security features protect automotive networks from malicious attacks. This portfolio is described as a ‘One-stop shop for in-vehicle networking’ by Marvell. You can find more information on Marvell’s Brightane Ethernet PHY’s, switches and bridges here.

In December 2021, Marvell introduced the industry’s first multi-gig Ethernet camera bridge solution.. This is the latest addition to Marvell’s Brightlane automotive portfolio. The new bridge provides standardisation for in-vehicle distribution in multiple areas.

“We are extending our leadership in Ethernet-based solutions to enable autonomous driving and usher in the next generation of automotive architectures,” said Will Chu, senior vice president and general manager of the Automotive Business Unit, Marvell. “Marvell’s newest Ethernet bridge solution builds on the introduction of our multi-gig 802.3ch Ethernet 10Gbps PHY, integrated with image sensor interface. The new Ethernet device underscores Marvell’s commitment to enabling smarter, safer and greener vehicles with innovative automotive networking, storage, compute and security semiconductor solutions.” (Marvell)

“Marvell’s Ethernet-based bridges are becoming an essential component for the software-defined cars of today,” said Ian Riches, vice president for the Global Automotive Practice, Strategy Analytics. “Not only do Ethernet-based products fit seamlessly into a zonal architecture, but with 802.3ch they are also proving to be an attractive alternative to the SerDes solutions currently used to transport video data in the vehicle.” (Marvell)

“Today’s high-speed long-distance camera to ECU communication are proprietary point-to-point protocols that narrow our customers’ design options, which is why they have been requesting a standardized protocol such as Ethernet,” said Stephen Harris, director of Automotive Systems Architecture at onsemi. “Marvell’s 88QB5224 is a single chip 10 Gbps standard Ethernet PHY solution that provides the fast speed needed to enable our portfolio of high-performance, ultra-dynamic range image sensors. onsemi has become the leader in automotive imaging by developing and supporting innovative solutions in this space and is excited to be an early adopter of 88QB5224 by adding it to our popular MARS (Modular Automotive Reference System) development platform.” (Marvell)

The automotive industry suffered a significant decline in sales during the pandemic. Thereby decreasing demand for automotive ethernet. Manufacturing plants stopped production to avoid further losses, and governments of various countries banned import-export activities. Thereby hampering growth of this market. However, there are numerous factors expected to influence and increase growth in future.

The automotive ethernet market size was $2.1 billion in 2021. It is forecasted to grow to $11.1 billion by 2030. Automotive ethernet can increase vehicle safety. Increasing consumer awareness and favourable government regulations pertaining to safety will likely have a positive impact on the market. The European Commission has also announced a new regulation related to the implementation of Intelligent Speed Assistance (ISA) for light vehicles. These factors increase market growth.

Rising disposable income will also increase demand for luxury vehicles which offer advanced services (using automotive ethernet). Increasing popularity of ADAS, and the emergence of MEMS (Micro-electromechanical systems) will drive automotive ethernet market growth. There are also trends such as the increasing demand of Internet of Things (IoT) in automotive. As well as the increasing demand for lightweight, electric and hybrid vehicles. Both these factors drive growth.

Section TL;DR:

  • Marvell’s Brightlane are targeted for ADAS (advanced driver-assistance systems) and in-vehicle infotainment.
  • Expecting to grow in this segment due to increasing demand.
  • Marvell offers a complete portfolio of Automotive Brightlane Ethernet PHY, tracievers, bridges and switches supporting speeds of 100Mbps to 10Gbps with enhanced safety and security features.
  • The automotive industry suffered a significant decline in sales during the pandemic. But there are numerous factors expected to increase growth in future.
  • The automotive ethernet market size was $2.1 billion in 2021. It is forecasted to grow to $11.1 billion by 2030.
  • Vehicle safety, regulations, rising disposable income, rising popularity of ADAS, the emergence of MEMS (Micro-electromechanical systems), Internet of Things (IoT) demand, increasing demand for (lightweight, electric and hybrid) vehicles; these are all factors that will drive growth.

I had a section that summarised recent articles from Marvell’s blog. But I decided to remove it in the interest of being concise. If you want to do further reading, I recommend checking it out: https://blogs.marvell.com/page/2/

Competition in the data centre market: Broadcom, Nvidia, Intel, AMD, ARM, Texas Instruments, and Microchip:

  • Broadcom has a 70% market share in ASICs for data centres. Marvell has a 29% share.
  • Nvidia has also expanded aggressively in the data centre market. NVIDIA holds 90% market share in supercomputer accelerators.
  • Intel’s CPU’s power 77% of servers in 2021.
  • AMD’s CPU’s power 18% of servers in 2021. AMD also uses its GPU architecture for data centres. ‘The enterprise, embedded and semi-custom segment saw an increase of 69% to $1.9 billion driven by EPYC process and semi-custom’ YoY in 2021 (fierceelectronics)
  • One in twenty servers (170,000 units) shipped between July and September 2021 were using an ARM CPU.
  • Texas Instruments are competing with Marvell in the data centre, industrial and automotive markets. They produce cheaper analog and embedded chips which support power management, wireless and data transfer features for a myriad of devices. I can’t find an exact figure in comparison to Marvell, but here’s some useful data: ‘In 2020, TI generated 37% of its revenue from the industrial market, 20% from the automotive market, 27% from personal electronics, 8% from communications equipment, and 6% from enterprise systems. The remaining 2% came from other markets.’ (Nasdaq). TI held about 8.3% of the auto semiconductor market in 2020.
  • Microchip Technology has a 3.13% market share in comparison to competitors Q4 2021.

Networking and data centre segment:

I’ve already covered a lot of this in my writeups about Inphi and Innovium and 5G, so for this section I’ll try and include any information I haven’t already covered. Further information about the networking/data centre segment will be included in the Data Processing Unit (DPUs) section and Storage Solutions section.

Networking/data centre’s accounts for a large portion of Marvell’s revenue, data centre revenues contributed to 41% of the total in Q4 2021.

“On an end market basis, Data Center revenues, which contributed 41% to total revenues, stood at $499.7 million, up 109% year-over-year. Additionally, Carrier Infrastructure contributed revenues of $215.1 million, up 28%, while revenues at Enterprise networking came in at $247.2 million, up 56%. Furthermore, Consumer Market revenues of $182.5 million rose 20%, while Automotive/industrial revenues grew 114% to $66.6 million.” (Nasdaq)

‘Marvell CEO Matt Murphy said, “For the fourth quarter, we are expecting sequential revenue growth of 9 percent at the midpoint of guidance, led by 5G, which is projected to increase by 30 percent sequentially and data center which is forecasted to continue to grow in the double digits on a percentage basis.”’ (Nasdaq)

The company provides a broad range of ethernet switch chips, processors and baseband chipsets as well as custom ASICs for edge, cloud and carrier customers. It has a partnership with TSMC.

According to GM insights, Data Center Networking market size was estimated at $20 billion in 2020, it is expected to grow to $45 billion in 2027.

Marvell has a wide range of networking solutions, including FastLinQ Ethernet network adapters and controllers, Ethernet Switches, Ethernet PHYs and Automotive Ethernet.

It’s data centre products include: Marvell OCTEON and AMADA DPU’s, as well as custom versions of these, and custom ASICs.

It’s storage solution products are used in SSDs and HDDs, which are in turn used in data centres. These products include SSD Controllers, HDD Controllers, HDD Preamplifiers, Storage Accelerators, and QLogic Fibre Channel Adapters and Controllers. On May 27, 2021, Marvell announced its first NVM Express SSD controllers to support PCI Express 5.0. Marvell offers a range of security solutions, including LiquidSecurity HSM Adapters and NITROX Cryptographic Offload Engine.

Section TL;DR:

  • Networking/data centre’s accounts for a large portion of Marvell’s revenue, data centre revenues contributed to 41% of the total in Q4 2021.
  • Carrier Infrastructure also contributes significantly to revenues.
  • The company provides a broad range of ethernet switch chips, processors and baseband chipsets as well as custom ASICs for edge, cloud and carrier customers. It has a partnership with TSMC.
  • It also provides storage solution products used in SSDs and HDDs, which are in turn used in data centres.

To summarise, Marvell is very well positioned to take advantage of data centre growth, 5G buildup, and connected and autonomous vehicles.

In the next part of the DD I will cover:

  • Storage controllers.
  • Security solutions.
  • Data Processing Units (DPU’s).
  • Information around earnings, options interest, future growth, technical analysis etc.
  • Any other notable topics I find that I haven’t already covered.

General TL;DR/TL;DR of the section TL;DR’s:

  • Marvel acquired Inphi in April 2021, a strong company in electro-optics, serving hyperscale cloud providers. The deal is expected to drive long-term incremental growth by 5% on avg through 2025. Inphi could account for 30% of Marvell’s revenue by 2025. Dr. Ford Tamer (Inphi’s president/CEO) joins the board of directors at Marvell.
  • Marvell has acquired Innovium for $1.1 billion in, which had a 29% market share in Q4 2020. The deal allows Marvell to obtain a more substantial portfolio to face the future in networking. Marvell now can compete more broadly against competitors (Broadcom, Intel, Texas Instruments, and Microchip). Marvell now has stronger momentum with hyperscalers and cloud service providers. The Innovium CTO/Founder Puneet Agarwall, with 20 years of experience, has joined Marvell as an advisor. This deal strengthens Marvell’s cloud data centre game and position in the Ethernet switch semi market. It also secures Innoviums channels in the merchant cloud semi switching market.
  • Marvell will innovate in 5G via the Inphi acquisition, and it already has high-speed optical interconnect systems. Hyperscale data centres are using Marvell’s technology. It has also collaborated with Dell to launch the “Dell Open RAN Accelerator Card”. Marvell is showcasing it’s Open RAN technology at MWC 2022. It is also collaborating with Meta. 5G is a rapidly expanding technology set to transform entire industries.
  • Marvell’s Brightlane targets ADAS and in-vehicle infotainment. It is expected to grow in this segment due to increasing demand. Despite a significant decline in the automotive industry due to COVID, it is expected to grow in future due to: vehicle safety, regulations, rising disposable income, rising popularity of ADAS, the emergence of MEMS (Micro-electromechanical systems), Internet of Things (IoT) demand, increasing demand for (lightweight, electric and hybrid) vehicles.
  • Networking/data centre’s revenue contribute to 41% of the total revenue in Q4 2021. Carrier Infrastructure is separately contributing to revenues. The company provides a broad range of ethernet switch chips, processors and baseband chipsets as well as custom ASICs for edge, cloud and carrier customers. It has a partnership with TSMC. It also provides storage solution products used in SSDs and HDDs, which are in turn used in data centres.
  • To summarise, Marvell is very well positioned to take advantage of data centre growth, 5G buildup, and connected and autonomous vehicles.

Submitted February 24, 2022 at 11:41PM by Emony-Dax
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