People said the companies could announce the deal as soon as possible on Thursday.
Marvell, which has a market value of about $ 26 billion, makes chips primarily used in data storage and networking. Buying Inphi will help Marvell expand its reach in networking, a rapidly growing segment that has helped push Inphi’s stock up nearly 50% this year.
The semiconductor industry is in the midst of a complete merger frenzy, all the more surprising in the midst of an epidemic. This has been filled by the increasing demand for laptops and videogames, which increase the number of people stuck at home, as well as data centers that facilitate the transfer of companies’ online business activity.
Rising share prices on the back of that demand have given chip companies a tool to make spectacular acquisitions.