Marvell Technology Signs $115 Billion Deal to Acquire Optical Fibre Maker Lumentum
US-based leading chip manufacturer Marvell Technology has signed a definitive agreement to acquire premium optical fibre components manufacturer Lumentum.
The all-stock deal, including debt, is valued at a total of $115 billion. It is the largest acquisition in the technology sector so far in 2026. Through this move, Marvell has mounted a major direct challenge to Broadcom, another major powerhouse in the data centre and AI chip industries.
Deal Details and Expansion of the AI Market
Based on the closing share price on October 28, Marvell will issue $1,132 worth of its stock for each Lumentum share, representing a premium of approximately 23.9 percent over the company's market value at the time. This puts the deal's net equity valuation of Lumentum at $102.54 billion.
Marvell said the acquisition would expand the combined addressable market of the two companies to approximately $550 billion.
It is worth noting that earlier in 2026, chip giant Nvidia made strategic equity investments of $2 billion each in Marvell and Lumentum, bringing its total investment to $4 billion.
The new mega-merger further consolidates Marvell's position in the optical interconnect technology market, which is essential for ultra-fast data transmission in artificial intelligence and AI data centres.
Commercial Impact and the Changing Technology Industry Landscape
Thanks to its development of custom AI chips and advanced networking infrastructure for global technology giants such as Amazon and Google, Marvell's annual revenue has surged from $3 billion in 2021 to $8.2 billion in 2026. In addition, Marvell signed a massive $120 billion business agreement with Google last August.
Meanwhile, US trade restrictions on Chinese optical components are expected to drive up both global demand for Lumentum's products and their supply value significantly. Following its acquisition of Celestial AI for $3.5 billion in February this year, Marvell is now adding Lumentum to its portfolio in an effort to secure an undisputed leading position in the global AI infrastructure and chip markets.
//DBTech/BMT/OR//
