Bloomberg reports that #Marvell is in advanced talks to acquire optical communications component maker #Lumentum, with an announcement potentially com...

What happened

Bloomberg reports that Marvell is in advanced talks to acquire optical communications component maker Lumentum, with an announcement potentially coming as soon as next week; whether the deal will be completed remains undetermined. Marvell is already a customer of Lumentum's laser products, while NVIDIA invested US$2 billion in each company earlier this year. TrendForce views the potential acquisition as a strategic move by Marvell to position itself early for optical interconnects at both the scale-in level (within servers and packages) and the scale-up level (within racks) in the CPO/NPO era. Marvell already offers electronic components such as DSPs and has gained optical I/O technology spanning package-to-rack connectivity through its acquisition of Celestial AI, while Lumentum supplies the indium phosphide (InP) lasers used as external light sources in NVIDIA's CPO switches. TrendForce notes that DSP functions are expected to gradually migrate into ASICs or electronic integrated circuits (EICs) as optical interconnects move deeper into racks and packages, while light sources remain difficult to integrate directly into silicon chips; with CPO penetration still low, the acquisition would represent a long-term positioning play.

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Source: TrendForce Official (Market Data) · 10/28/2026 · View original source