Marvell expanded its multi-year agreement with GlobalFoundries to secure additional SiGe manufacturing capacity for next-generation optical connectivity products.
- The additional GlobalFoundries capacity is intended to support Marvell’s growing demand for optical products used in AI and cloud data centers.
- The GlobalFoundries agreement builds on more than a decade of collaboration between the two companies.
- Marvell also teamed up with Microsoft and Utimaco to launch Azure Payment HSM v2, a cloud-native security service for payment workloads.
Marvell Technology (MRVL) shares climbed in morning trade on Thursday after the company expanded its manufacturing partnership with GlobalFoundries (GFS) and unveiled a new cloud-native payment security platform with Microsoft (MSFT) and Utimaco.
Marvell and GlobalFoundries expanded a multi-year agreement to increase manufacturing capacity for silicon-germanium (SiGe) technology used in Marvell’s next-generation optical connectivity products.
Meanwhile, Marvell, Microsoft and Utimaco announced Azure Payment HSM v2, a cloud-native payment security service combining Marvell’s LiquidSecurity hardware security modules, Utimaco’s Atalla Payments Module software and Microsoft Azure.
MRVL stock rose around 4.5% in morning trade, hitting its highest level for September, amid broader market strength. On Stocktwits, retail sentiment around the company remained in ‘bearish’ territory over the past day.
Marvell Expands Capacity For AI Optical Connectivity
Under the expanded agreement, GlobalFoundries will increase capacity for its SiGe technology at its Burlington, Vermont, facility to support Marvell’s growing requirements.
The technology is used in pluggable optical transceivers, Near-Packaged Optics (NPO) and Co-Packaged Optics (CPO), which are designed to move data between computing systems at increasingly high speeds.
Marvell said the additional capacity will help support the transition toward higher-bandwidth optical architectures as AI data centers scale.
Our expanded collaboration with GF will help ensure we have the SiGe technology and manufacturing capacity to support the significant growth we see ahead.
– Robb Johnson, Vice President, Foundry Technology, Marvell
GlobalFoundries’ current SiGe technology supports 200G-per-lane optical connectivity, with a roadmap aimed at higher-speed generations as AI and cloud infrastructure require more bandwidth. The expanded agreement builds on more than a decade of collaboration between the two companies.
GFS stock jumped more than 8% in morning trade. On Stocktwits, retail sentiment around foundry service provider trended in the ‘bullish’ zone.
Marvell, Microsoft Launch Azure Payment HSM
Marvell also announced Azure Payment HSM v2 in partnership with Microsoft and Utimaco, providing financial institutions with access to a cloud-based security platform for payment workloads.
The service is designed for banks, payment processors and other financial institutions that need to secure payment transactions and cryptographic keys while meeting requirements around PCI security, compliance and data sovereignty.
The service allows customers to use hardware-backed payment security through Azure without deploying and managing their own physical hardware security module infrastructure.
MSFT stock gained 1.1% in morning trade, while retail sentiment around the tech giant on Stocktwits trended in ‘bearish’ territory over the past day.
Azure Payment HSM v2 became available for public preview Thursday in the Western U.S. and Western Europe. Neither announcement disclosed the financial value of the agreements or provided specific revenue guidance.
MRVL stock has gained over 180% year-to-date and nearly 240% in the last 12 months.
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