People familiar with the matter said that U.S. company Marvell Technology had entered final discussions to acquire optical components maker Lumentum and that an announcement could come as early as next week. If completed, the acquisition would be a major consolidation in the AI optical communications sector.
Marvell Technology is in the final stages of negotiations to acquire optical components maker Lumentum Holdings, and if the talks conclude successfully, the transaction could become one of the semiconductor industry's largest deals of the year. People familiar with the matter indicated that an announcement could come as early as next week, while reporting that the transaction terms had not yet been finalized. Lumentum shares rose approximately 11% in after-hours trading, while Marvell shares fell approximately 8%.
The integration of the two companies could simplify the supply chain by vertically integrating the procurement of lasers and photonics equipment used to transmit AI data for data centers. Marvell already sources lasers from Lumentum, and its network business is expected to strengthen if the integration is completed. Lumentum is headquartered in California, and Marvell also has operations in the state.
Some market participants believe that demand for optical communications components is accelerating as AI data centers expand, and that NVIDIA's investment in Lumentum and the potential acquisition highlight the strategic scarcity of supply relative to demand. NVIDIA invested $2 billion in Lumentum earlier this year, drawing attention to the company's central role in supplying optical modules.
Overall, the potential restructuring involving Marvell and Lumentum reflects corporate moves to strengthen competitiveness in optical modules and build AI infrastructure. Attention is also focused on government antitrust regulation and competition oversight. Neither company responded to requests for comment.