All-Stock Transaction With Enterprise Value of USD 115 Billion
Marvell Technology announced on November 2, 2026 that it will acquire optical component manufacturer Lumentum in an all-stock transaction with an estimated enterprise value of USD 115 billion, approximately NT$3.7 trillion. Under the terms of the transaction, Lumentum shareholders will receive 4.5 shares of Marvell common stock for each 1 share held, representing a 23.9% premium over Lumentum's closing price on October 28. Upon completion, existing Marvell shareholders will hold approximately 67% of the combined company, with Lumentum shareholders holding approximately 33%. Reuters estimated the equity value of the transaction at approximately USD 102.54 billion.
Targeting Generational Opportunity in AI Optical Communications
Marvell Chairman and CEO Matt Murphy said AI infrastructure is undergoing a fundamental architectural shift toward optical communications, a generational opportunity, and that the companies that move first and define the transition will set the standard for decades to come. Optical communications use light to transmit information, enabling high-bandwidth data transmission to meet increasingly complex data transfer demands. Through this acquisition, Marvell's total addressable market is expected to expand to USD 550 billion, covering custom chips, networking and optical communications. The move will put Marvell in more direct competition with Broadcom, the key custom-chip partner of Google.
Successive Moves to Strengthen Photonics Capabilities
Marvell has made frequent moves recently, including completing the USD 3.5 billion acquisition of Celestial AI in February 2026 to strengthen its photonics capabilities, and signing an agreement with Google in August 2026 to supply chips for its AI processors, with potential sales of up to USD 120 billion through fiscal 2033. The acquisition of Lumentum is seen as a continuation of its optical communications technology deployment in AI computing systems, further integratWafer Worksing chip and optical component capabilities.
Expected to Close in First Half of 2028
Marvell expects the acquisition to strengthen long-term revenue growth, non-GAAP gross margin and operating margin, and to be accretive to non-GAAP earnings per share within the first year after closing, with expected annual cost synergies of more than USD 1 billion. The transaction has been unanimously approved by both boards of directors and remains subject to shareholder, regulatory and other customary approvals, with completion expected in the first half of 2028. Lumentum President and CEO Michael Hurlston and two other board members will join the Marvell board of directors upon completion. For Taiwan's semiconductor industry, the merger is expected to drive demand for advanced processes, high-bandwidth memory and assembly and testing, bringing both opportunities and challenges to the supply chain.