{"text":[[{"start":0.5,"text":"US semiconductor group Marvell has agreed to buy data centre component maker Lumentum in a $115bn transaction, which, if completed, would be the largest-ever M&A deal involving two publicly listed tech companies."}],[{"start":23.92,"text":"The all-stock deal, which is one of the year’s biggest in any sector, marks a big bet on the durability of the AI boom when Wall Street has become increasingly jittery about tech companies’ trillion-dollar spending spree."}],[{"start":34.34,"text":"The two Silicon Valley companies said on Monday that the merger would create a “leader in AI connectivity” as the industry races to handle the expected demand for computing power to power AI."}],[{"start":44.845,"text":"“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” said Matt Murphy, chief executive of Marvell."}],[{"start":57.356,"text":"Marvell helps hyperscalers including Microsoft and Amazon to design their own specialised AI accelerator chips, providing an alternative to Nvidia’s. It also struck a multibillion-dollar deal with Google in August to expand the Big Tech group’s range of custom semiconductor products."}],[{"start":74.304,"text":"Lumentum produces optical technology used in data centres and telecommunications networks, including lasers, with much of its manufacturing located in the Silicon Valley and across the US."}],[{"start":86.96,"text":"“Our commitment to expanding domestic manufacturing not only supports a robust AI infrastructure supply chain but also reinforces America’s role in global technology leadership,” said Michael Hurlston, Lumentum chief executive."}],[{"start":99.104,"text":"Both companies also work with Nvidia, which invested $2bn in each via two separate deals in March as part of a broader push into optical technologies."}],[{"start":108.88,"text":"Their merger comes at a critical juncture for the AI boom as investors grow increasingly wary of whether the record-breaking investment in data centres will pay off."}],[{"start":117.76,"text":"Tech stocks have tumbled in recent weeks, with the Nasdaq 100 suffering its worst month in more than a year in October amid concerns over the level of borrowing behind the AI build-out."}],[{"start":129.68,"text":"Even with those wobbles, Marvell’s share price has nearly doubled in the past 12 months, while Lumentum’s stock has increased 10-fold in the past two years."}],[{"start":136.566,"text":"Marvell’s takeover of Lumentum is a bet that AI chips will be clustered together in ever larger numbers, requiring more sophisticated networking equipment."}],[{"start":145.12,"text":"Vast data centres holding hundreds of thousands of AI processors are increasingly connected using optical networks, which can carry much higher volumes of data than the copper-based systems that have traditionally passed information between servers."}],[{"start":159.795,"text":"“Simply put, a tie-up here would allow Marvell to best address the high-margin optical component landscape for the next decade” and boost its ability to compete with larger rival Broadcom, BNP Paribas analyst Karl Ackerman wrote in a note to clients last week following rumours of the deal."}],[{"start":176.14,"text":"Lumentum closed about 19 per cent lower in New York on Monday, while Marvell was about 13 per cent lower. Both also dropped sharply on Friday as part of the sector’s broader rout."}],[{"start":185.01,"text":"As part of the deal, Lumentum shareholders will receive 4.5 Marvell shares for each share they own of the smaller company. The companies said this marked a premium of 24 per cent on before takeover rumours began last week."}],[{"start":202.16,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1793686117_3446.mp3"}